India will break U.S. sanctions and keep importing Iranian oil

US considers sanction waivers on countries reducing imports of Iranian oil

US considers sanction waivers on countries reducing imports of Iranian oil

Another factor easing those fears was a Friday Reuters report that cited an unnamed us government official as saying the Trump administration is considering waivers on its sanctions for countries that agree to reduce their imports of Iranian oil.

Petroleum Minister Dharmendra Pradhan said two state-owned oil refiners, Indian Oil Corporation and Mangalore Refinery and Petrochemicals, had signed contracts to import 1.25 million tonnes of Iranian oil next month, Mint newspaper reported.

Oil dropped below $83 a barrel on Monday, pressured by expectations that some Iranian oil exports will keep flowing after the US reimposes sanctions, easing a strain on supplies.

Oil prices rose on Tuesday as more evidence emerged that crude exports from Iran, OPEC's third-largest producer, are declining before the imposition of new USA sanctions and as a hurricane moved across the Gulf of Mexico.

India would continue its energy imports from Iran even in the wake of the U.S. government's 4 November deadline, hinted petroleum minister Dharmendra Pradhan on Monday.

That's down from at least 2.5 million bpd in April, before President Donald Trump in May withdrew the USA from a 2015 nuclear deal with Iran and reimposed sanctions.

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. The industry has been worrying that an entirely effective ban on Iranian oil exports would strain supplies.

The most recent oil price move higher began after an OPEC panel at the end of September didn't recommend any immediate production boost, snubbing demands from U.S. President Donald Trump that the "OPEC monopoly must get prices down now!"

"Iran's oil can not be replaced by Saudi Arabia nor any other country", Zanganeh was quoted as saying on his ministry's website. And Saudi Arabia and OPEC and non-OPEC countries, they've produced 1.5 million barrels a day.

Oil also dropped as investors focused on rising output from other producers, such as top exporter Saudi Arabia, to compensate for lower Iranian supplies.

The cost of the Indian basket of crude rose to $84.14 a barrel on 5 October, according to the Petroleum Planning and Analysis Cell.

On Monday, petrol and diesel were selling at Rs 82.03 per litre and Rs 73.82 per litre, respectively, in New Delhi.

On the last week's excise duty and fuel price cut, the minister said these prices will not be deregulated.

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