Crude Oil Price Analysis: Risk Premiums Unwind as US Mulls Waivers

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Government was discussing its options to buy Iranian oil with all authorities, said Mr Pradhan.

Indian Oil Corp will lift 6 million barrels of Iranian oil and Mangalore Refinery and Petrochemicals another 3 million barrels, the source said.

Oil traders initially reacted to a selloff in Chinese stocks, but as the USA stock market opened higher, "we've pulled back dramatically", said Mark Anderle, an energy trader at TAC Energy.

Ralph Leszczynski, Banchero Costa's head of research in Singapore, tells TradeWinds: " The US sanctions on Iranian oil imports are strictly unilateral, as they have been actively resisted by other buyers of Iranian oil.

Washington is pushing allies to cut imports of Iranian oil to zero and will impose a new round of sanctions on Iranian oil sales in November.

USA sanctions will target Iran's crude oil exports from Nov 4, and Washington has been putting pressure on governments and companies worldwide to cut their imports to zero.

India's Oil Minister Dharmendra Pradhan speaks during an interview with Reuters in New Delhi, India, June 12, 2015. He said any countries or companies that conduct transactions with Tehran were liable to face secondary sanctions.

Iran has questioned whether the market needs more oil and says its output is holding steady at about 3.8 million bpd.

Opec accounts for around 40% of the global production.

While Brent prices softened on Monday from $86 per barrel and was trading at $83.53 per barrel, traders worldwide are betting on crude oil prices to cross $100 yet again.

Sri Lanka, a country closely watched by the United States is expected to raise oil prices again by Wednesday midnight under the fuel price formula in line with increasing global prices.

DUBAI - Iran's Oil Minister Bijan Zanganeh has dismissed claims by the Saudi crown prince that Saudi Arabia can replace sanctions-hit Iranian oil in the market as "nonsense".

None of the Iranian crude exported in the first week of October is heading for Europe, according to the Refinitiv data. Many BJP-ruled states have also cut the value-added tax (VAT) on fuel by an equivalent amount. It added that the effective reversal of fuel price deregulation would also constrain future private sector investments in the sector.

"The step taken by the government reverses the price deregulation of diesel and petrol and increases the likelihood that the government may ask upstream companies Oil and Natural Gas Corporation (Baa1 stable) and Oil India Limited (Baa2 stable) to share the fuel subsidy burden", the report added.

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