Iran refutes Saudi claim that can meet post-sanctions oil demand

India buying Iran oil in defiance of Trump sanctions

Several of the world's biggest trading houses expect US sanctions on Iran to keep oil prices high with crude staying above $65 and possibly breaking above $100 in the medium term.

USA crude was down 0.7 percent at $73.80 a barrel. The Trump administration is considering waivers on sanctions, a us government official said on Friday.

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. Buying oil from Iran is a good option for India because of the 60 days of credit and practically free shipping and insurance.

Saudi Arabia, the world's biggest oil exporter, will supply Indian oil buyers with an additional four million barrels of crude oil in November, several sources familiar with the matter said on Wednesday.

The second wave of sanctions that would hit on November 4 would aim to bring Iran's oil exports to zero as claimed by USA officials. Refiners in the country have placed orders to buy 9 million barrels from Iran in November.

Some energy market analysts expect around 500,000 barrels per day (bpd) to disappear once USA sanctions against Iran come into force, while others have warned as much as 2 million bpd could come offline over the coming months.

This follows a decision by US President Donald Trump to withdraw from a nuclear deal that Washington - together with Britain, France, Germany as well as Russian Federation and China - signed with Iran in 2015.

United States sanctions against Iran will kick in from 4 November, which will block payment routes.

"This time round, because there is so much less of a consensus on the sanctions from other countries, there will be even more of a push to obtain exceptions or find ways to walk around the sanctions". It further added that this is the longest streak of weekly cuts since October past year. "So let us see how it evolves", he said.

In May, before US President Donald Trump announced reinstating sanctions against Tehran, the International Monetary Fund had projected Iran's economy would grow by 4.0 percent in 2018 and again next year.

"These officials are planning to announce that it's OK to give banks waivers because re-imposed sanctions on businesses are sufficient", the source explained.

Alongside potential waivers on Iranian sanctions, oil supply is seemingly back on the rise with Libya recently boosting oil production to 1.25mbpd (200kbpd more than the September average).

India, Iran's top client after China, has close diplomatic ties with Iran, where it is building a strategic port called Chabahar that is expected to be operational by 2019.

Indian Oil Corporation Chairman Sanjiv Singh said on Monday the company has recently made some payments for Iranian oil in rupees.

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