USA may grant waivers on Iran crude sanctions

Marco Green
October 10, 2018

USA sanctions targeting Iran's crude oil exports come into force from November 4, with Washington ratcheting up the pressure on governments and companies around the world to slash their Iranian oil imports to zero.

"I don't think anyone believed it was technically possible to go to zero in six months if we wanted to replace Iranian oil barrel for barrel from other suppliers, ensuring the price of oil doesn't spike and ensuring that the brunt of our sanctions pressure falls on Iran rather than our allies", said Richard Goldberg, a former senior Senate staffer who helped write the original Iran sanctions legislation.

Singh said options for paying for Iranian oil are under discussions.

Citing the Kremlin, Reuters reported that Iranian Foreign Minister Mohammad Javad Zarif and his Russian counterpart Sergei Lavrov discussed ways to enhance Tehran-Moscow energy cooperation over the telephone on Monday.

"Any country that makes such claims. just wants to display its support for the U.S. sanctions against Iran", Zanganeh was quoted as saying.

With Iran sanctions still on the table, potential spare capacity constraints and also a slowdown in USA drilling, US bank J.P.Morgan said in its latest cross-asset outlook for clients that it recommended to "stay long Jan '19 WTI on supply risks to crude".

Iran has warned that if it can not sell its oil due to USA pressure, then no other regional country will be allowed to do so either, threatening to block the Strait of Hormuz.

The U.S. has since said it could consider exemptions for countries that have already shown efforts to reduce their imports of Iranian oil. The global benchmark hit a four-year high of $86.74 last week but slipped as low as $82.66 on Monday.

Reliance Industries Ltd, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemicals Ltd, sought an additional 1 million barrels each in November, one of the sources said.

"These officials are planning to announce that it's OK to give banks waivers because re-imposed sanctions on businesses are sufficient", the source explained. "So let us see how it evolves". It was India's second biggest supplier of crude oil after Saudi Arabia till 2010-11 but Western sanctions over its suspected nuclear programme relegated it to the seventh spot in the subsequent years.

This is the first public statement made by the Government on its stand on sourcing Iranian oil once the USA sanction on Iran pertaining to the oil industry comes into force.

State-owned oil producer Saudi Aramco was not immediately available for comment.

Has the simmering crude oil market peaked, even if for the time being?

Under Cost, Insurance and Freight (CIF) mode of shipping, the seller assumes the responsibility of transportation and insurance.

Other reports by Click Lancashire

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