Iran assures India on oil supply say after diplomats warning

  • Iran assures India on oil supply say after diplomats warning

Iran assures India on oil supply say after diplomats warning

In a Tuesday interview with Sky News Arabia, U.S. Secretary of State Mike Pompeo suggested there might be some room to maneuver on Iranian oil exports.

State Department officials were joined by Treasury Department officials and spent three days in Saudi Arabia to discuss ways to economically isolate Iran, and at the same time, keep oil markets well-supplied, the official noted.

Trump said he would reintroduce sanctions, and Washington later told countries they must stop buying Iran's oil from November 4 or face financial consequences.

US President Donald Trump announced in early May the unilateral withdrawal of the US from the Iran nuclear deal and the reinstatement of sanctions against the country, as well as against foreign companies who do business with it.

Britain, France, and Germany along with Russian Federation and China met with Iran in Vienna to offer economic benefits and assurances that would lessen the blow of sweeping USA sanctions announced by Trump.

"However, if India were to replace Iran with countries like Saudi Arabia, Russia, Iraq, US and others for 10% of its oil demand then it may have to revert to dollar-denominated imports", Rahaghi said. "The zero tolerance policy and the pace with which it is moving no doubt concerns Iran's current crude buyers".

Rahaghi pointed out that Iran had remained a reliable energy partner for India providing oil at a "rationale pricing". Overall purchases climbed on a higher intake of crude from Mexico, the United States and Azerbaijan. A report last week from Swiss investment bank UBS found spare capacity, the amount of oil a producer can add to the market in short order, could fall to a 10-year low within the next year. HPCL-Mittal Energy Ltd continued to skip Iran oil imports for a second month in June, the data showed. The sources declined to be identified since they are not authorised to speak to the media.

State refiners, accounting for about 60% of India's almost 5 million bpd of refining capacity, lifted about 10% more Iranian volumes in June compared to May, at about 454,000 bpd, the data showed. The Iranian oil ministry's news service Shana reported in May that the country's oil exports reached a record 2.617 billion barrels per day (bpd) in April - the highest since Tehran signed a nuclear deal with global powers. Imports by state refiners during the period more than doubled to about 413,400 bpd from 191,700 bpd, the data showed.

Jahangiri said it would be a mistake to think the United States "economic war" against Iran will have no impact, but added: "We will make Americans understand this year that they can not stop Iranian oil sales".