United States grants waivers to nearly all Iran oil clients

United States grants waivers to nearly all Iran oil clients

Oil is poised for the biggest weekly loss since February on concerns over growing supply at a time when speculation is increasing that USA sanctions on Iran won't cut the OPEC producer's exports to zero.

Goldman Sachs said it expects Iran's crude oil exports to fall to 1.15 million barrels per day (bpd) by the end of the year, down from around 2.5 million bpd in mid-2018.

Energy agency figures in the U.S. continue to show a steady build-up of supply stocks in the American oil markets, and oil traders are remaining confident that broader market production will be able to weather any potential supply constraints following the imposition of stiff USA sanctions on Iran beginning on November 4th.

India, which is Iran's second-largest customer for oil, has said it can not immediately replace its Iranian imports and is seeking a waiver, while Turkey has also sought an exemption from the U.S. Treasury Department.

While European powers believe the deal has been successful and have sought to preserve trade with Iran, most major companies have chosen to exit the country rather than incur the wrath of USA authorities. "India will cut import by about 35% from previous year (2017-18), which is a significant cut", a source said. The companies will be allowed to import 1.25 million tons a month up to March 2019, the same as they ordered for October and November.

Sexual abuse accepted as part of ordinary life in N. Korea
Hundreds of young South Korean men, mostly Jehovah's Witnesses, are imprisoned every year for refusing to serve in the military. In this October 7, 2018, photo provided by the North Korean government, North Korean leader Kim Jong Un , center left, and U.S.

A waiver will come as a big relief to Indian Oil and MRPL, the two largest Iranian oil consumers. They still have to decide on how to split the quantum and on the form of payments, the source said.

"We're quite confident moving forward that the actions that are being taken are going to help us exert maximum pressure against the Iranian regime", deputy State Department spokesman Robert Palladino said at a briefing on Thursday. "As South Korea and India reportedly agreed with the USA on waivers, the Iran factor is weakening".

"In practical terms, this will mean that E.U. member states will set up a legal entity to facilitate legitimate financial transactions with Iran and this will allow European companies to continue to trade with Iran in accordance with European Union law and could be open to other partners in the world", she told reporters. The leader said it's possible Iran will face more hard times ahead, but asserted that the government will use all its power to reduce any problems. During the summer, however, Iranian oil sales to India averaged much higher, topping out at a record 768,000 bpd during July.

Bolton also issued unsubtle warnings to Iran's leaders: "We are watching, and we will come after you".

India prefers Iranian oil as it comes cheap and suits many refineries' technical configuration.

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