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India will keep buying Iranian crude despite the threat of US sanctions

India will keep buying Iranian crude despite the threat of US sanctions thumbnail

  • U.S. sanctions targeting Iran’s crude oil exports come into force from November 4, with Washington ratcheting up the pressure on governments and companies around the world to slash their Iranian oil imports to zero.
  • However, Indian Oil Minister Dharmendra Pradhan said India would continue to purchase Iranian crude in November, according to Reuters.
  • Pradhan also added the country was considering evolving a different payment system to buy Iran’s oil and that it could pay using Indian rupees.

Two Indian oil companies have placed orders to import Iranian crude next month, Oil Minister Dharmendra Pradhan said Monday, defying a call from President Donald Trump‘s administration for countries to completely cut-off the Islamic republic.

U.S. sanctions targeting Iran’s crude oil exports come into force from November 4, with Washington ratcheting up the pressure on governments and companies around the world to slash their Iranian oil imports to zero.

However, Oil Minister Pradhan said India would continue to purchase Iranian crude in November, according to Reuters.

Speaking at the “The Energy Forum” in New Delhi on Monday, he said the world’s third-largest oil importer did not know whether it would receive a waiver from U.S. sanctions.

Pradhan also added the country was considering evolving a different payment system to buy Iran’s oil and that it could pay using Indian rupees. This would signal an attempt to bypass U.S. sanctions on Iranian transactions using the dollar — the dominant currency in global oil trade.

Waivers

U.S. Secretary of State Mike Pompeo said in India last month that the White House would only consider waivers for Iran’s oil buyers if they vowed to eventually bring their imports to zero.

Indian refiners imported around 10 million barrels of Iranian crude in October, although its November shipments are likely to be lower.

US Secretary of State Mike Pompeo (L) looks on as the Indian Foreign Minister Sushma Swaraj (R) present statements to the media following a meeting in New Delhi on September 6, 2018. Indraneel Chowdhury | NurPhoto | Getty Images

Indraneel Chowdhury | NurPhoto | Getty Images
US Secretary of State Mike Pompeo (L) looks on as the Indian Foreign Minister Sushma Swaraj (R) present statements to the media following a meeting in New Delhi on September 6, 2018. Indraneel Chowdhury | NurPhoto | Getty Images

State owned oil and gas company, Indian Oil, was thought to be planning on purchasing 6 million barrels of Iranian oil next month, while Mangalore Refinery and Petrochemicals were set to buy 3 million barrels, Reuters reported on Friday, citing two unidentified industry sources.

In the previous round of U.S. sanctions on Iran from 2012 to 2015, India continued to purchase Iran’s oil although it was forced to dramatically reduce its purchases to protect its wider exposure to the U.S. financial system.

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

Immediate impact

Late last month, Trump urged OPEC producers to ratchet up production levels to prevent further price rises ahead of the mid-term elections in early November.

The Trump administration’s push for the Middle East-dominated cartel to start pumping more oil comes as the White House prepares to impose sanctions against Iran in around four weeks’ time. There are concerns a shortfall in Iran’s oil production could prompt global oil supply to fall and prices to rise.

Washington is also asking buyers of Iranian oil to slash imports to zero to force Tehran to negotiate a new nuclear agreement. The U.S. has since said it could consider exemptions for countries that have already shown efforts to reduce their imports of Iranian oil.

What’s next for oil?

What’s next for oil?  

U.S. sanctions against Tehran are widely expected to have an immediate impact on Iran’s oil exports, although the estimates of exactly how much of the country’s oil could disappear from November 4 vary widely.

Some energy market analysts expect around 500,000 barrels per day (bpd) to disappear once U.S. sanctions against Iran come into force, while others have warned as much as 2 million bpd could come offline over the coming months.

CNBC



20 Comments on "India will keep buying Iranian crude despite the threat of US sanctions"

  1. Weekly Star on Mon, 8th Oct 2018 7:08 am 

    When Donald Trump sings the well known 1950s tune “I love, I love, my calendar cat” he has modified a few of the words so that he sings (and those around him, including most vocally Vice president and Man Servant Mike Pence), “I love, I love, my scrotum sac.”

    I’m sure you are puzzled why substituted scrotum sac for calendar cat.

    We have this answer…..

    For some time now, intense speculation has circulated as to the origin of Donald Trump’s unique hair-doo. We finally broke the code. The Weekly Star paid a source “in excess of $1 million” to produce close-up photos that show a pubic hair transplant from Trump’s scrotum sac, anus area, armpits, and upper back to his head. The process occurred over a six month period and involved multiple procedures. The article and photos will be published in the Thursday edition (correction from earlier date of Tuesday) of the weekly newspaper.

    I am required to disclose I am employed by the Star.

  2. deadly on Mon, 8th Oct 2018 8:54 am 

    Thanks for the informative news concerning DJT.

    India should buy Western Canadian Select, it is 25 dollars and change today.

    First Nations would then be more accepting of the oil market and trade. How can you not want to sell oil from Canada to India?

    It is a win-win for them.

  3. The last drop on Mon, 8th Oct 2018 9:03 am 

    Deadly writes…
    First Nations would then be more accepting of the oil market and trade. How can you not want to sell oil from Canada to India?

    This, to some extent, is a doomsday scenario of the eventual demise of Alberta through the over exploitation of its oil and gas resources. To a degree this is a warranted prognosis. Much of Alberta’s resources are environmentally difficult to extract compared to oil in Arab countries. The extraction methods are environmentally invasive; the tar sands around Fort McMurray and natural gas in southeastern Alberta are the prime examples used in this book.

    The rivers and water sheds are being chemically polluted. Indian communities north of Fort McMurray where the Athabasca flows are getting rare forms of cancer. Farmers in southeastern Alberta develop skin rashes and irritations because their water wells are becoming toxic from extraction of natural gas. The Alberta and Canadian governments are ignoring this. The energy companies are obfuscating. The Alberta government, ignoring the Kyoto Protocols, has given energy companies an environmental carte blanche to come in and shop. All for money and jobs – a good election platform. It makes one wonder what happens to people in less developed areas of the world where there are no environmental movements and human rights can be trampled. Even though the farmers and the Indians are suffering they are at least permitted an outlet and can voice some dissent – and their claims can be made to the governments.

    Mr. Marsden is excellent at pointing out the problems of minority groups and small communities – Indians in Fort Chipewyan or dispersed farmers can do little to combat the forces of energy companies that are being backed up by the government.

    Stupid to the Last Drop: How Alberta Is Bringing Environmental Armageddon to Canada (And Doesn’t Seem to Care) Paperback – September 30, 2008
    by William Marsden (Author)

    https://www.amazon.com/Stupid-Last-Drop-Environmental-Armageddon/dp/0676979149

  4. joe on Mon, 8th Oct 2018 10:05 am 

    They are also buying the S400, thats right S400 sam system. Probobly (imho) because Pakistan has the Chinese version and you don’t want your enemies to have the same as you because they’ll know your weaknesses. Buying the S400 though is a serious upgrade and is far beyond what’s required against the Pakistani military. My guess is they probobly want to buy a system they can use that is neither Chinese or American.

  5. Cloggie on Mon, 8th Oct 2018 11:58 pm 

    Sanctions are going to backfire. Eurasia feels strong enough to withstand pressure from the empire. The prestige of the empire declines with it and it could all be intentional by DJT, the American Gorbachev, the two empire wreckers.

  6. makati1 on Tue, 9th Oct 2018 12:20 am 

    Have to agree with you on this one, Cloggie. Trump is doing everything possible to destroy the US. With congress locked up in a “He said…”, “She said…” sideshow, only negative things can happen there.

    Throw in the so called “intelligence” agencies doing a “they did it, not me” dance, and you get chaos and destruction across the board.

    And, as usual, the military is begging for more money for toys for the insane generals and admirals to play with when the US already spends more than the rest of the world combined and is over $21,000,000,000,000.00 in debt.

    Barnum & Bailey never had such an entertaining freak show as is now the US government. It is equaled only by the American sheeple themselves. Fun to watch … from far shores. LMAO

  7. Davy on Tue, 9th Oct 2018 3:36 am 

    “Have to agree with you on this one, Cloggie. Trump is doing everything possible to destroy the US.”

    You two are so obsessed about this subject your ability to reality test is minimal. Sad.

  8. Davy on Tue, 9th Oct 2018 3:38 am 

    This board has become a freak show. especially at night when the dogs are loose barking and howling.

  9. makati1 on Tue, 9th Oct 2018 3:46 am 

    But Davy, we are sitting on the sidelines watching the show. You are one of the slaves in the arena with the elite lions. You know how that ends. Messy!

    BTW: You are the one living in the night time, not us. It is late afternoon here and late morning in Cloggie’s country. Middle of the night in Missouri.

  10. Davy on Tue, 9th Oct 2018 3:56 am 

    “But Davy, we are sitting on the sidelines watching the show. You are one of the slaves in the arena with the elite lions. You know how that ends. Messy!”
    LOL, you are stupid when you try to be cute, billy. I am moderating your poor performance and by the morning time when I get up much of the worst of your dumps has been neutered.

    “BTW: You are the one living in the night time, not us. It is late afternoon here and late morning in Cloggie’s country. Middle of the night in Missouri.”
    Good one billy, do you want a sucker?

  11. Davy on Tue, 9th Oct 2018 3:58 am 

    BTW, it is funny how you generally go to bed when I get up. The reason being you can’t stand up to the moderation. So much of what you say is extremist exaggerations that it does not hold up when scrutinized.

  12. Chrome Mags on Tue, 9th Oct 2018 3:31 pm 

    •However, Indian Oil Minister Dharmendra “Pradhan said India would continue to purchase Iranian crude in November, according to Reuters.
    •Pradhan also added the country was considering evolving a different payment system to buy Iran’s oil and that it could pay using Indian rupees.”

    Strong, defiant move, thanks India! I wonder how isolated the US could end up if countries continue to defy US strong arm tactics and work together.

  13. Richard Guenette on Wed, 10th Oct 2018 6:53 pm 

    Trump is going to destroy America with his out of control behaviour (He is an egomaniac, sociopath, compulsive liar and doesn’t care about anyone but himself). He is no friend to the world.

  14. Richard Guenette on Wed, 10th Oct 2018 7:00 pm 

    Instead of war, we need to learn how to live in peace and harmony with one another. We as human beings need to stop being hostile to each other and learn how to show empathy. All of countries that were bombed should be rebuilt (infrastructure needs to be rebuilt)and humanitarian aid workers need to be sent in to help civilians traumatised by wars.

  15. Richard Guenette on Wed, 10th Oct 2018 7:02 pm 

    Iran is no threat to the world, not even my country (Canada).

  16. antaris on Wed, 10th Oct 2018 8:05 pm 

    Guess you don’t live in North Van Rich.

  17. Davy on Thu, 11th Oct 2018 6:01 am 

    “Iran is no threat to the world, not even my country (Canada).”

    LOL, I was right a Canadian sock…gregt? It could be nederlander too playing his “sum” approach of acting another nationality. In “sum” case it was Iranian. This board’s extremist are hilarious. They will try anything.

  18. Cloggie on Thu, 11th Oct 2018 6:40 am 

    “Trump is going to destroy America with his out of control behaviour (He is an egomaniac, sociopath, compulsive liar and doesn’t care about anyone but himself). He is no friend to the world.”

    As a European I love what DJT is doing to the empire, but I admit my motives aren’t entirely pure…

    Anything that roles back 1914-1945…

  19. Cloggie on Thu, 11th Oct 2018 6:43 am 

    “Iran is no threat to the world, not even my country (Canada).”

    Proliferation is a serious threat to anybody. Everybody in Eurasia supported the Obama deal, still does. Why cancel that!?

  20. peakyeast on Thu, 11th Oct 2018 7:49 am 

    Considering how rabid and relentless and the willingness to crawl in the mud to dig out irrelevant things on Trump and how little that has actually stuck. I gotta say he is probably the most honest politician the US has had for a looong time – especially since every critic of him has had to resort to namecalling and pointing out petty details in how he articulates himself.

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