Pressured by Report Saudi Arabia Stands Ready to Cover Shortfall

India buying Iran oil in defiance of Trump sanctions

ICJ orders US to ease Iran sanctions; India to continue purchasing crude oil from Iran

Iran's oil minister said on Monday that the market will never believe "exaggerated" claims by Saudi Arabia that it can replace Iranian oil shipments lost due to renewed United States sanctions.

Iran's crude exports fell further in the first week of October as buyers sought alternatives ahead of USA sanctions that take effect on November 4, according to tanker data and an industry source.

Further weighing on oil prices was "chatter that Saudi Arabia has replaced all of Iran's lost oil", said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore. USA light crude CLc1 was down 5 cents at $74.91.

Pradhan said two state refineries have made nominations to purchase Iranian oil in November.

With the European Union considering the creation of a "special objective vehicle" before November to facilitate trade with Iran, India hopes to find a way to settle payments to Tehran.

President Donald Trump has said the Iran oil sanctions are meant to isolate the regime in that country and force them to negotiate a new nuclear deal.

"If waivers were granted to others, to big oil consuming countries, you could see it (the price) go down, there's a lot of uncertainty right now", Dudley said.

"India is continuing with its relationship with both its key energy partners Iran and the USA", a second source said.

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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 USA sanctions and throwing a challenge to other OPEC oil producers as they seek to cover the shortfall.

Iran has warned that if it can not sell its oil due to U.S. pressure, then no other regional country will be allowed to do so either, threatening to block the Strait of Hormuz.

UCO Bank had in the previous round of sanctions handled rupee payments.

The softer stance on Iran plus news that Saudi Arabia and Russian Federation could ramp up oil production to compensate for the sanctions has lowered oil prices slightly.

In the previous round of USA 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 us financial system.

Oil prices have extended a rally on expectations the sanctions will test the Organization of the Petroleum Exporting Countries and other producers.

The administration is still committed to pressuring the globe to cease Iranian oil imports, the official said.

The best value zone for the November WTI crude oil market is $72.35 to $71.27.

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