Oil price drops to $83 on signs of Iran’s exports

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".

Pradhan said a new world order was being established and added, "Is this not a recognition of India's leadership?"

Saudi Arabia's crown prince indicated the country has pumped up oil production and is willing to replace the lost Iranian barrels in the last few weeks.

Some veteran Iran watchers cautioned against criticizing the administration for its decision to consider oil waivers, telling the Free Beacon it is very hard for nations to cut their imports to zero in the matter of months.

International Olympic Committee and ONGC's refining subsidiary MRPL, (Mangalore Refinery and Petrochemicals Ltd) have placed an order for 1.25 million tonnes of Iranian crude.

Global benchmark Brent crude traded at around $83.38 on Monday, down almost 1 percent, while U.S. West Texas Intermediate (WTI) stood at around $73.81, around 0.7 percent lower.

Washington is pushing allies to cut imports of Iranian oil to zero and will impose a new round of sanctions on Iranian oil sales in November. China is reportedly reducing its oil imports from Iran, though it's not likely to fully comply with the us demands.

USA sanctions will target Iran's crude oil exports from November 4, and Washington has been putting pressure on governments and companies worldwide to cut their imports to zero. An industry source who also tracks exports said October shipments were so far below 1 million bpd.

Iranian crude exports, which reached a peak of some 2.5 million barrels after sanctions were lifted in 2016, have plunged by over 500,000 barrels a day and are expected to dive further when expanded sanctions on oil take effect next month.

The United States is imposing new sanctions on Iran's oil industry after Washington withdrew from a nuclear deal between Tehran and other global powers.

Crude oil prices softened on October 5 to close around the $83/billion barrels (bbl) mark after rising to $86/bbl.

Brent crude futures rose $1.09 to settle at $85.00 a barrel, a 1.30 percent gain.

The Minister also categorically stated that the government's directive to oil companies to absorb a Rs. 1 per litre hit to the price of petrol and diesel was not a reversal of the deregulation of oil prices.

Some Indian refiners recently made payments for Iranian oil in rupees, and could use the same mechanism in future to settle trade with Tehran if no other alternatives were found, state-run Indian Oil Company (IOC) Chairman Sanjiv Singh said.

In the run-up to 2019 general elections, Fitch Ratings recently raised the spectre of return of state control on fuel pricing in India.