Published: Tue, October 16, 2018
Markets | By Otis Pena

PM warns of high oil prices hurting global economic growth

PM warns of high oil prices hurting global economic growth

Highlighting India's significant position in the sector, Modi said oil prices had risen because the market is producer-driven and both the quantity and prices are determined by the oil-producing countries. "There is plenty available in different parts of the world", PTI quoted Pradhan as saying on the sidelines of the Indian Energy Forum.

Rejecting claims that India has sought a waiver of sanctions from the USA as to continue purchasing crude oil from Iran, Oil Minister Dharmendra Pradhan said he has articulated the country's position on importing oil from the Persian Gulf nation in November and "there is nothing new to repeat".

The rising crude oil prices have pushed the rupee down - this year it has fallen 14.5 per cent, making imports costlier. "That is the primary challenge", Pradhan said.

He said the developments show that the United States "will definitely not be able to cut Iran's oil exports to zero" - the goal set by USA officials - when sanctions targeting the oil sector go into effect on November 5. "Issue is not shortfall".

Indian insurers are not offering coverage policies for storage of Iranian oil, an Indian Oil Corp Ltd (IOC) official said, owing to impending USA sanctions on import of crude from Iran, which are expected to kick in on November 4.

US Coalition targets Syrian Town with Banned White Phosphorus
The crossing is also vital for Syria's neighboring Lebanon, providing its agricultural products a route to foreign markets. State news agency SANA said the logistical arrangements for opening the crossing had been completed.

The Times of Israel reported that Iran also may have reached a deal with Russia last month to take delivery of Iranian crude oil and then refine it and sell it to global buyers, in yet another possible scheme to bypass US sanctions by "laundering" the oil through Russian markets. While Saudi Arabia and Russian Federation have increased production, "according to our information some of the (OPEC) countries are lagging behind".

State oil company Saudi Aramco plans to supply Indian buyers with an additional 4 million barrels of crude oil in November, several sources familiar with the matter said last week. "Firm volumes are the ones that oil companies commit to necessarily take and there is an optional volume on top of it which they can dip into if the need arises", a top official at a state-run refiner said.

India is the world's third-largest consumer of oil, much of it imported from the Middle East.

The National Iranian Oil Company announced that Tehran is resurrecting an oil exchange it used to sell oil during a last round of global sanctions four years ago, before most sanctions were lifted under Iran's 2015 nuclear deal in exchange for curbs on Iran's nuclear activities.

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