So the global oil market is not going to be hit by a shortage of supplies from Iran just yet and, moreover, further waivers are expected to be issued once the initial 180 day waivers expire. U.S. Secretary of State Mike Pompeo told FOX News that the easing of sanctions is temporary.
But President Donald Trump withdrew the United States from the deal in May, calling it flawed to Iran's advantage, and reimposed far-reaching USA sanctions in phases, with the most damaging oil and banking penalties taking effect on November 5. Moreover, Trump's sanctions against Iran's financial sector essentially make 30 banks and their subsidiaries off-limits to foreign lenders, undermining its means to facilitate trade.
The United States will exempt from sanctions the development of Chabahar along with an attached railway project and Iranian petroleum shipments into Afghanistan, the State Department said. At that time, the U.S. administration had announced that sanctions on oil exports would be imposed in six months time. They have stated that Iran has been compliant with the terms of the agreement and therefore the United States withdrawal from the JCPOA is unwarranted.
"Crude prices are rising".
Despite some dire forecasts of a massive bull run in crude oil, the market has come off the boil in the last four weeks, thanks to a slight easing of geopolitical tensions, including less-rigorous sanctions on Iran and supply-demand fundamentals asserting themselves.
In the meantime, the oil market can probably cross Iran off its list of worries, but pencil it back for sometime around April next year. Washington also threatened secondary sanctions on nations and corporations that continue to do business with Tehran. Condensate is a light oil that is produced with gas and fetches a higher price than crude because it is easier to refine into high-quality products.
Iran's oil exports rose sharply after the previous round of sanctions were lifted in early 2016. OPEC oil shipments will rise by 670,000 barrels a day to 25.79 million barrels a day in the four weeks to November 24 versus the period to October 27, according to data from tanker tracker Oil Movements.
In 2017-18, India imported 22.6 million tonnes of oil from Iran.
On Wednesday, President Trump took credit for keeping oil prices low.
Instead it was a continuation of the theme of ample supply and the risk to growth into 2019 that helped drive Brent crude oil down to key support at $71.5 ahead of the psychologically important $70 level.
India is, thus, being given time to phase out its oil imports from Iran in a calibrated fashion.