Oil prices gain as Iranian crude exports fall, Hurricane Michael nears

Oil prices gain as Iranian crude exports fall, Hurricane Michael nears

Hedge funds cut their bullish wagers on USA crude in the latest week to the lowest level in almost a year, data showed on Friday. The Trump administration is considering waivers on sanctions, a USA government official said on Friday.

"The U.S. appears to be abandoning its tough stance on buyers of Iranian oil", analysts at Commerzbank said. Currently, India pays Iran in euros using European banking channels but these would be blocked from November, said the report.

In a sign that Iran oil exports won't fall to nothing from November, India will buy 9 million barrels of Iranian crude next month, Reuters reported on Friday.

Another factor easing those fears was a Friday Reuters report that cited an unnamed usa government official as saying the Trump administration is considering waivers on its sanctions for countries that agree to reduce their imports of Iranian oil.

While Washington has said it wants to cut Iran's oil exports to zero, Iran and Saudi Arabia say that is unlikely.

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

Furthermore, Leszczynski says that if India were to stop or significantly reduce imports from Iran, it would complicate the strategic relationship it is trying to build between the two countries.

Washington is also asking buyers of Iranian oil to slash imports to zero to force Tehran to negotiate a new nuclear agreement.

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"Any country that makes such claims. just wants to display its support for the USA sanctions against Iran", Zanganeh was quoted as saying.

That is the longest streak of weekly cuts since October previous year.

President Trump chose to leave the deal and reimpose sanctions.

The news of India's continued importation of Iranian crude had a positive effect on oil prices, with Brent crude down 1.6% to $82.79 at the time of writing on Monday morning.

Given their dependence on Iranian oil supplies, the Indian refiners are concerned about the loss of Iranian crude once the sanctions start and are seeking exemptions. "So let us see how it evolves", he said.

Although countries like Turkey, Russia, and China have indicated they will go ahead with their oil trade with Iran, the European Union will probably accede in a large measure, given the exposure of their companies to the USA banking system.

Drillers cut two oil rigs in the week to October 5, bringing the total count down to 861, energy services firm Baker Hughes said in its weekly report on Friday.

Has the simmering crude oil market peaked, even if for the time being?

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