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India, China & Turkey to support Iran crude sales going ahead

Gasoil News - Published on Thu, 08 Nov 2018

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ET reported that , said global natural resources consultancy Wood Mackenzie said that with the imposition of US secondary sanctions on Iranian exports today, its outbound shipments of crude are expected to fall even as crude sales will find support from state-run firms in India, China and turkey. WoodMac said in a report “Beyond November 5, we expect crude exports to fall to one million barrels per day (mbpd), though it could vary month to month; and condensate to 100,000 barrels per day. Crude sales will be concentrated around a core of supportive state buyers, China, India and Turkey.”

Homayoun Falakshahi, a senior research analyst with Wood Mackenzie’s Middle East upstream team, said that “It will be difficult for Iran to maximise exports when virtually all trade in oil is cleared in US dollars, putting global oil companies, many national oil companies, traders and banks off limits. Crude exports contribute one-third of government revenues. So, there’s a huge incentive for Iran to use every conceivable lever.”

The oil market is facing a precarious time, thanks to the sanctions, which are a critical factor behind brent’s rally to over $80 per barrel in October. There is enough supply to meet demand this winter but the margin for error is narrow, it said.

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Posted By : Joykumar Irom on Thu, 08 Nov 2018
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