US Actively Considering Waivers on Iran Oil Sanctions

  • US Actively Considering Waivers on Iran Oil Sanctions

US Actively Considering Waivers on Iran Oil Sanctions

The United States plans to impose new sanctions targeting Iran's oil sector on November 4, however a US government official said the Trump administration is "in the midst of an internal process" of considering waivers for countries that are reducing imports of Iranian crude.

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

U.S. West Texas Intermediate (WTI) crude futures rose 67 cents to settle at $74.96 a barrel, a 0.90 percent gain.

Crude oil for October was trading lower by Rs 80, or 1.44 percent, to Rs 5,466 per barrel with a business volume of 2,472 lots at the Multi Commodity Exchange (MCX).

Iran's crude exports fell further in the first week of October, according to tanker data and an industry source, taking a major hit from US sanctions and throwing a challenge to other OPEC oil producers as they seek to cover the shortfall.

India is the world's third-largest oil importer, and Iran's second-biggest oil customer after China.

The Indian orders have reportedly been placed by Indian Oil Corp (IOC) and Mangalore Refinery and Petrochemicals Ltd (MRPL). Secretary of State Mike Pompeo said in India last month that the administration would consider waivers and that some buyers of Iranian oil would take a "little bit of time" to unwind their trade with Iran. China is reportedly reducing its oil imports from Iran, though it's not likely to fully comply with the USA demands. The industry has been worrying that an entirely effective ban on Iranian oil exports would strain supplies.

If current forecasts prove accurate, the hurricane would largely miss major producing assets in the Gulf, analysts said, but any change of track could widen the impact.

Industry and government data on U.S. crude inventories will be delayed by one day this week because of Monday's U.S. Columbus Day holiday. The American Petroleum Institute is due to release data on Wednesday, while the U.S. Energy Information Administration is due to publish on Thursday.