The world will require very little extra oil from OPEC this year as booming US output will offset falling exports from Iran and Venezuela, the International Energy Agency said on May 15.
The visit of Iran foreign minister Mohammad Javad Zarif in the context of the removal of waivers that India had enjoyed for the past six months is significant. The first item on Zarif’s agenda will of course be to discuss the modalities related to continued imports of Iranian oil
Crude oil prices hit a fresh five-month high on Tuesday after the Trump administration decided not to extend the waiver that it had granted to India and seven other countries on Iranian oil imports beyond the May 2 deadline.
Iran is likely to award up to five oil exploration and production contracts to local firms, with the first deal expected within months, a senior oil official was quoted on Monday as saying.
Iran’s oil minister said on Sunday that U.S. sanctions on Iran and Venezuela and tensions in Libya have made the supply-demand balance in the global oil market fragile, and warned of consequences for increasing pressures on Tehran.
India imported about 5 percent more oil from Iran in the last fiscal year through March as companies raised purchases ahead of U.S. sanctions against Tehran from November, preliminary tanker arrival data obtained from shipping and industry sources showed.
India has asserted that it is engaged with the Trump administration on the issue of US waiver on import of Iranian crude oil, which expires early next month.
The Donald Trump Administration is likely to let a small group of countries, including India continue buying Iranian oil after a US deadline on sanctions waivers expires in May, say analysts.
The United States is keen to see that Malaysia, Singapore and others are fully aware of illicit Iranian oil shipments and the tactics Iran uses to evade sanctions, a top US sanctions official said on Friday.
India’s crude oil imports from Iran and Venezuela fell 50 per cent and 4.2 per cent, respectively, in February as compared to the corresponding month a year ago, fresh data sourced from the Directorate General of Commercial Intelligence and Statistics (DGCIS) showed.