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Oil prices rise as Iranian crude exports fall

10 October 2018
Oil prices rise as Iranian crude exports fall

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

The details provided by Refinitiv Eikon showed the Islamic Republic exported 1.1 million barrels per day (bpd) of crude last week.

The U.S.'s sanctions on Iranian oil come into effect on November 4, but at least one country says it won't be playing ball.

"Likely, India and Iran will agree to use Rupee payments instead of United States dollar payments, something already tried between 2013 and 2015, with Iran then using Rupees to import food, medicines and other commodities from India", said Leszczynski.

LONDON-Oil prices started the week under pressure, amid reports the US could grant waivers to some buyers of Iranian crude when oil sanctions on the Islamic Republic go into effect next month.

Oil prices rose on Tuesday on growing evidence of falling crude exports from Iran, OPEC's third-largest producer, before the imposition of new US sanctions and a partial shutdown in the Gulf of Mexico due to Hurricane Michael.

"Our goal remains to get to zero oil imports from Iran as quickly as possible, ideally by November 4", when the full spectrum of sanctions are re-imposed on Iran.

Further weighing on oil prices was "chatter that Saudi Arabia has replaced all of Iran's lost oil", said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

However, the returning US sanctions now have made the International Monetary Fund revise sharply down the economic prospects of Iran, to a recession this year and next.

Iran says its oil flow to the market should not be hampered no matter what as Western oil news and information providers are steadily claiming declines in Iran's exports, putting them at about 1.7 million bpd ahead of the sanctions. Since the start of September, prices had spiked by over 10 per cent reaching a four-year high despite the fact that at the Algiers meeting last month OPEC had declared that the market was comfortably supplied.

On Nigeria's interest rate, he said, "The current state of tightening will continue until at least we see inflation attaining those levels that have been set as a target".

The news of India's continued importation of Iranian crude had a positive effect on oil prices, with Brent crude down 1.6% to $82.79 at the time of writing on Monday morning. The Indian basket represents the average of Oman, Dubai and Brent crude. Also, subsidised domestic cooking gas prices have been increased by Rs 2.89 per 14.2 kg cylinder to Rs 502.40, an all-time high. It added that the effective reversal of fuel price deregulation would also constrain future private sector investments in the sector. "The basic point is that they are all government companies", Pradhan said, according to The Hindu.