Official says S Arabia unable to replace Iran’s oil

Official says S Arabia unable to replace Iran’s oil

The government was discussing its options to buy Iranian oil with all authorities, Pradhan said.

Meanwhile, the US Energy Information Administration (EIA) reported a huge increase in weekly crude oil inventories.

During the previous round of sanctions, India had continued importing Iranian oil although purchases were cut significantly to safeguard itself from the USA financial system.

On Thursday, Brent futures fell $1.65 a barrel (1.9 per cent) to $84.64 a barrel and USA futures were down 2.7 per cent at $74.33 a barrel. Last month, the group appeared to rebuff his calls for a rapid production increase to offset the drop in Iranian shipments, prompting a surge in prices and even harsher rhetoric.

WTI's weekly gain was about 1.3%; Brent's was around 1.4%.

The US officials were least moved, however, with President Donald Trump's National Security Advisor (NSA) John Bolton revealing that the US would give up the "optional protocol" under the Vienna Convention on Diplomatic Relations - a 1961 worldwide treaty that outlines diplomatic ties between nations.

Friday marked the end of a particularly volatile week for crude that saw one massive uptick, one massive loss, and everything in between, and culminating in flat trading for the Brent and West Texas Intermediate benchmarks - with traders obsessed over what market impact the us sanctions against Iran will have when they come into effect in November.

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But the pull-back did little to dent a 15-20 percent rise in oil prices since mid-August, which has pushed them to their highest since late 2014.

India will buy a total of 9 million barrels of oil from Iran in November, foreign media reported yesterday, citing an industry source, despite U.S. sanctions on Tehran to return early next month.

India is trying to import crude oil to Iran by $ 1.25 million tonnes of imports from the Indian Oil Corp (IOC) Mangalore. "It now appears that only China and Turkey may be willing to risk US retaliation by transacting with Iran". "The tightness of oil supply means that prices are particularly susceptible to shocks, and implies that risks are firmly to the upside", said World Bank economist Cesar Calderon.

However, Goldman Sachs says the rally may not last.

"Chatter that Saudi Arabia has replaced all of Iran's lost oil" is weighing on prices, said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore. It has returned to its 4-year highs as traders expected a solid market due to the sanctions.

This price per barrel, recorded on Friday, is the highest since October 2014, driven by concerns over a possible reduction in global supply following the imposition of fresh U.S. sanctions against Iran. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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