Hoping For US Waiver, India Tries To Keep Iran Oil Flowing

Hoping For US Waiver, India Tries To Keep Iran Oil Flowing

Hoping For US Waiver, India Tries To Keep Iran Oil Flowing

Oil on Friday clawed back some of its losses from the previous session, when prices fell the most in a month, as concerns about oil supply are countering worries that emerging market crises and trade disputes could dent demand, Reuters reports.

Iran told OPEC last month that no member country should be allowed to take over another member's share of oil exports, expressing Tehran's concern about Saudi Arabia's offer to pump more oil amid the sanctions that threaten to cut Iranian oil sales.

A long-time adviser at Saudi Arabia's Energy Ministry also said last month that current US sanctions on Iran were unlikely to stop Iranian oil exports completely.

Responding to a question from Congressman Eliot Engel, the Indian-American official said the Trump Administration has been talking to all its allies and partners and trying to convince them to fully implement the new Iranian sanctions which the United States has imposed following its withdrawal from the Iranian nuclear deal.

In a move heavily opposed by Iran, OPEC and other oil producers including Russian Federation agreed in June to boost crude output by around a million barrels a day, reversing course after supply cuts that had cleared a global glut and boosted prices. "We've made it clear that unless we act as a global community, Iran's behaviour is not going to change", Singh said.

Oil prices broke the $80 a barrel barrier yesterday as the storm, along with Donald Trump's sanctions on Iran, bumped prices.

"Buyers can pay in kind, trade in other currencies, or extend credit - even keep the money in an escrow account in Switzerland and wait until these sanctions are over".

Under the deal, Iran undertook to put limits on its nuclear program in exchange for the removal of nuclear-related sanctions.

IRAN faces a potentially crushing loss of oil exports when United States sanctions return in November, but the impact could be blunted by its experience of working around embargoes. The spike in output also brought total global supply to a record 100 million barrels a day last month.

US production jumped in recent years because of techniques including hydraulic fracturing, or "fracking", which is the use of chemicals, sand, water and high pressure to crack rock formations deep below ground, releasing more oil and natural gas.

He cited declines in Mexican production of more than half this year, as well as falling production in Venezuela by around 50,000 bpd, falling by half to little more than 1 million bpd, adding "that the market is still not balanced in long-term perspective".

The group said OPEC has another 2.7 million barrels a day of spare production that it could tap, 60 per cent of it in Saudi Arabia.

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