Brent crude drops below $83 on expectations Iran will maintain some exports

Marco Green
October 9, 2018

A gas flare on an oil production platform in the Soroush oilfields is seen alongside an Iranian flag in Iran, July 25, 2005.

Also pressuring oil below $83 a barrel in early trade were reports that some Iranian oil exports will keep flowing after the U.S.re-imposes sanctions. And Saudi Arabia and OPEC and non-OPEC countries, they've produced 1.5 million barrels a day.

Reeling from high oil prices, India has also reminded Saudi Arabia of the promise by the Organization of the Petroleum Exporting Countries (Opec) of increasing production by an additional 1 million barrels per day, said Pradhan.

In May, Trump pulled the United States out of the Iran nuclear deal despite objection from the other signatories, the UK, Russia, Germany, China, and France, re-imposing sanctions lifted under the deal.

Delhi is hopeful that Saudi Arabia and other members of the Organization of Petroleum Exporting Countries will heed U.S. calls for production to be boosted by one million barrels per day, as promised in June, which might help bring benchmark prices down.

Egyptian‏ ‏and Palestinian officials on Sunday accused ‎Palestinian Authority leader Mahmoud Abbas of ‎actively escalating the crisis in the.

Speaking at an event here, Pradhan said two of India's state-owned companies had contracted for Iranian crude for November. Brent rose to a four-year high of $86.74 last week.

India has been curtailing oil imports from Iran since September. The tankers are sailing to India, China and the Middle East.

DUBAI - Iran's Oil Minister Bijan Zanganeh has dismissed claims by the Saudi crown prince that Saudi Arabia can replace sanctions-hit Iranian oil in the market as "nonsense".

The US administration is "prepared to work with countries that are reducing their imports on a case-by-case basis", the official added.

"This is one of the single biggest supportive factors for crude", said analysts at JBC Energy of the U.S.re-imposition of Iran sanctions.

Zanganeh accused Tehran's regional rival Saudi Arabia of bowing to USA pressure, saying such remarks had no "real impact on the market" but were part of a psychological war launched against Iran. Iran has pledged to block any OPEC supply increase that the country deems to be against its interest.

The Indian orders have reportedly been placed by Indian Oil Corp (IOC) and Mangalore Refinery and Petrochemicals Ltd (MRPL).

Other reports by Click Lancashire

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