Top executives in refining firms said they were waiting for guidance from the government about purchasing crude oil from Iran, which is India's third-biggest supplier of crude oil. Iran supplied 18.4 million tonnes of oil to India between April 2017 and January 2018, PTI reported.
Over the past several years, Korea has raised its reliance on Iranian crude.
Brent crude futures rose 23 cents to settle at $77.85 a barrel.
A spokesperson from Indian Oil Corporation Ltd told the paper that while the company already imports U.S. crude oil in spot purchase, it is considering firming up contracts as well. USA stockpiles declined by 9.89 million barrels last week, the most since September 2016, the Energy Information Administration reported Wednesday.
The West Texas Intermediate for August delivery jumped 2.23 US dollars to settle at 72.76 dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery added 1.31 dollars to 77.62 dollars a barrel on the London ICE Futures Exchange.
Pradhan asks OPEC to price oil responsibly
Production fell in Nigeria, Libya and Venezuela, but increased in Saudi Arabia, Algeria and Iraq. Benchmark Brent crude was up 87 cents, or 1.2%, at $76.75/Bbl by 2:28 p.m.
That's signals a shift from the Obama administration, which offered waivers to some countries when it imposed Iranian sanctions.
"It basically leaves us with no spare capacity, at a time when Iran isn't the only issue", Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd., said in a Bloomberg television interview. Iran's boycott by the USA is a means to isolate and punish them for its nuclear programme. Condensate is a key source for naphtha which is used to make gasoline or to dilute heavy crude. The shrinking availability of finance from global banks could enlarge the disruptions in Iranian oil exports as well. By companies, Hanwha Total imported the most in the first quarter of the year. How much more will Venezuelan production decline?
Zanganeh was also told if the deal was blocked by Iran, it may lead to the withdrawal of Russian Federation from the agreement, the sources said. If the U.S.is successful at convincing most countries to stop buying oil from Iran, the outages could rise to as high as 2 mb/d, although that remains speculation.
The Ministry of Trade, Industry and Energy said it has been negotiating with the U.S.to exclude condensate from the embargo and will continue effort to do so.
Oil prices jumped on Wednesday as plunging USA crude stockpiles compounded supply worries in a market already uncertain about Libyan exports, a production disruption in Canada and Washington's demands that importers stop buying Iranian crude from November.