Iran sanctions lifted, India can import oil freely

Published on : January 18, 2016 Topic : Business

NEW DELHI: With international nuclear sanctions on Iran being lifted on Sunday, India will resume its unrestricted import of oil from the Persian Gulf nation.

State-run Indian Oil Corp ( IOCBSE 1.10 %) here told IANS that the possibility of freely importing oil from Iran, to be paid for now in US dollars, comes at a time when global prices are expected to plunge further with Iranian oil adding to the supply glut.

Iran is expected to increase its export of 1.1 million barrels of oil per day by 500,000 soon, followed by a further 500,000 bpd thereafter.

The lifting of sanctions came after US Secretary of State John Kerry issued a statement confirming the International Atomic Energy Agency has verified that Iran "has fully implemented its required commitments".

The prospect of Iran doubling its crude oil exports has provoked the continuing fall in oil prices with UK Brent crude closing trade on Friday below $29 a barrel.

Brent and US' West Texas Intermediate (WTI) have declined on most days of trading this year with markets expecting supply to surpass demand.

The Indian basket of crude oils closed trade on the last trading day on Friday at a 13-year low of $26.43 a barrel, according to official data. The oil marketer cut the price.

Source: The Economic Times
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