India's oil imports from Iran to decrease further

Daniel Fowler
September 17, 2018

The official admitted that Iranian oil exports would drop, but reiterated Iran's position that the USA sanctions would not succeed in cutting off all of the country's oil sales. They were as high as 3 million a day back in 2016, the tanker tracking data show.

Benchmark Brent crude was up 16 cents or 0.2 percent at $78.34 a barrel after falling 2 percent on Thursday.

Friday also saw news from Baker Hughes that USA drillers added two oil rigs in the week to December 1, bringing the total count up to 749, the highest since September.

Washington has said it wants to cut Iran's oil exports to zero following the reimposition of a second set of sanctions on 4 November.

Novak said that "today, the situation is quite fragile, of course, and it is related to the fact that not all the countries have managed to restore their market and production".

Elsewhere in his remarks, Kazempour Ardebili suggested that a deal reached between OPEC and non-OPEC producers in 2017 over production ceilings had already lost effect.

Iranian oil exports have tumbled to almost 1.7 million barrels per day, the lowest output in more than two years.

Koreas open 1st liaison office for better communication
The office opening comes just prior to the third summit between Kim and Moon in Pyongyang next week, from September 18 to 20. The office is the first of its kind since the two countries were divided at the end of World War II in 1945.

Iran seems to be struggling again from United States sanctions and despite major buyers announcement for their full compliance with Washington's will to fully stop any incoming Iranian oil, Tehran is starting to store oil in fleet of supertankers again as impending USA sanctions force the Gulf country to revive a strategy it deployed under previous curbs.

Additionally, on Friday, Secretary of State Michael Pompeo said he would hold a news conference on new sanctions on Iran.

Also, OPEC's crude supply hit a nine-month high of 32.63 million bpd, despite concerns over Venezuela and Iran, with higher volumes from Nigeria and Saudi Arabia as well as increased output in Libya and Iraq contributing to the impressive total.

India was Iran's fifth major export destination in the five months, during which Iran mainly exported urea, methanol and liquefied propane to India.

Another factor that undercuts the argument of a tightening market is waning demand, and the IEA noted that the demand outlook for this year and next is less bullish, with demand growth unchanged at 1.4 million bpd and 1.5 million bpd, respectively.

The price of crude, market analysts warned earlier this month, could shoot up by 30 percent to a huge $95 (£74) dollars a barrel.

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