Published: Mon, October 08, 2018
Business | By Eloise Houston

United States terminates treaty with Iran after UN court ruling - Ireland

United States terminates treaty with Iran after UN court ruling - Ireland

India is Iran's second-largest single oil customer after China and was expected to cut back on Iranian oil purchases following U.S. sanctions.

US President Donald Trump's administration is considering sanction waivers for countries that are reducing their imports of Iranian oil, a US government official said on Friday.

Hedge funds cut their bullish wagers on U.S. crude in the latest week to the lowest level in almost a year, data showed on Friday.

On Wednesday, WTI crude was up 1.6 per cent at $76.41 a barrel, after touching a session high of $76.90 a barrel.

WTI crude was up 26 cents to $74.59 a barrel in mid-day trading while Brent was up 9 cents to trade at $84.67 a barrel.

Saudi Arabia's ARAMCO has said it will make up for market demands for crude in Iran's place. Saudi Arabia at present produces 10.7 million barrels per day.

India will buy 9 million barrels of Iranian oil in November, two industry sources said, indicating the world's third-biggest oil importer will continue purchasing crude from the Islamic republic despite US sanctions coming into force on Nov. 4.

The United States placed sanctions on Iran in May after tensions arose over the nuclear deal, which was struck in 2015.

"Iranian exports could fall below 1 million bpd in November", U.S. bank Jefferies said.

With Iran sanctions still on the table, potential spare capacity constraints and also a slowdown in USA drilling, U.S. 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 is attempting to interfere with the sovereign rights of the United States to take the lawful actions necessary to protect our national security, and Iran is abusing the ICJ for political and propaganda purposes", Pompeo told reporters.

India's purchases of U.S. crude oil have fallen by 75 percent over the past four months as the subcontinent stocks up on Iranian crude, Reuters has reported. The Indian oil refiners buy Iranian crude at $3-5 a barrel discount compared to that from other parts of Middle East.

Reports that emerged this week citing unnamed sources claim that the Saudis and Russians had already agreed (without the rest of OPEC) at the end of September to "quietly" raise output through December to keep oil prices under control.

Fundamentals indicate a price in the high $70s for Brent, but the reality is seen above that, he said.

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