US's Bolton says more sanctions likely on Iran

US's Bolton says more sanctions likely on Iran

US's Bolton says more sanctions likely on Iran

Traders said a glut in the refining sector, where a wave of unsold gasoline has pulled down profit margins into negative territory, may also lead to a slowdown in new feedstock crude orders, as refiners scale back operations to work down excess supply. "Key to short-term fundamentals - and price action - is the risk that Iran exports fall faster and more than new capacity can ramp-up, with high uncertainty on the level of USA potential waivers". It means any country or operation that would help Iran against U.S. national interests would face USA sanctions.

U.S. government waivers will allow some of Iran's biggest customers to buy crude from Opec's No. 3 producer for another six months, damping shortage fears. In October, Iran exported or placed into floating storage 1.7-1.8 mbpd of crude, a number that left it roughly flat month-on-month and everyone expected the November export debacle.

Oil prices also fell on an abundance of oil stored in the United States. "And sentiment is more complicated about how severe the Iranian sanctions will be". That policy, in place since 2017, helped end a historic oil price collapse that punished US energy companies and oil-exporting nations alike.

The U.S. Administration's decision to grant waivers on its Iran sanctions has placated fears that legal Iranian volumes will completely disappear from global markets.

No sooner did crude hit its latest lows on Wednesday than Trump, during a wide-ranging press conference the day after the mid term elections, declared that "If you look at oil prices, they've come down very substantially over the last couple of months, [and] that's because of me; because you have a monopoly called OPEC, and I don't like that monopoly".

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South Korea has averaged over 200,000 bpd of oil imports from Iran so far this year, down from around 350,000 bpd in 2017. Indian refiners will make payments in rupees for purchases of Iranian oil made since September, one of the sources said.

"Any of these waivers based payments for the oil by the exempt countries must go into escrow accounts".

Officials from both banks said, however, that won-denominated payments for Iranian oil were still being reviewed, and that no schedule a for resumption was set yet.

The latest batch of US sanctions severely impacts Iran's oil industry, the major source of the country's foreign revenue. 217 tankers worldwide transported Iranian crude oil exports between January and June 2018, 81 of which were Greek-owned - by comparison, only 51 of the tankers were owned by Iranian entities.

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