Report says India will buy Crude from Iran even as Dharmendra Pradhan concedes no clarity on US actions

Last Updated: Mon, Oct 08, 2018 18:52 hrs
Brent

New Delhi: The US sanctions on Iranian oil are expected to commence from November 4.

With barely two fortnights for the deadline, there has been ample speculation on the procurement strategies that Indian refiners may adopt.

Amid this melee, WTI crude prices were reported of breaching levels of $75 per barrel (October 1), and on Monday, a report said that two Indian companies were likely to buy 9 million barrels of Iranian oil in November.

Indian Oil was expected to lift 6 million barrels while Mangalore Refinery and Petrochemicals was expected to buy 3 million barrels said a Reuters report.

Reuters, in a subsequent story quoted Petroleum and Oil minister Dharmendra Pradhan as saying that India did not know well if there would be any waivers granted from the US for importing Iranian oil.

Media reports also highlighted the possibility of pay-outs being made in Rupee instead of Dollars.

A PTI story quoted a industry source as saying that since US dollar trades will be blocked by the US, oil payments may be routed to Iran via banks such as UCO Bank or IDBI bank.

Even as importers such as Reliance Industries have stopped buying crude from Iran, there is ample confusion on the US actions.

There are also concerns among buyers, with beliefs that a large scale US action could result in a rise in crude prices.

Many believe that the macro-economics look eerily similar to 2012, a year when crude prices hovered at $109.45 per barrel. Will we see Crude prices hit another fresh all-time high post November 4?

More from Sify: