"There are two downward pressures on global oil demand growth".
The United States plans to impose sanctions targeting Iran's oil sector on November 4.
Another country that has been seeking a sanctions waiver is Turkey, which takes significant volumes via pipeline from neighbouring Iran. But, as a condition of waiver, Indian oil firms will reduce their imports to 14-15 million tonnes, the source said. The National Iranian Oil Company (NIOC) has reportedly leased some storage capacity at Dalian.
Iran is India's third-largest oil supplier after Iraq and Saudi Arabia.
The US government has agreed to let eight countries, including close allies South Korea and Japan, as well as India, keep buying Iranian oil after it reimposes sanctions on Tehran from next week, Bloomberg reported on Friday (Nov 2), citing a US official.
The waivers "look likely but not yet formally decided", a government official told The Hindu, indicating that the final word rests with U.S. President Donald Trump who must sign them before November 4.
During the negotiations, India also told the United States that it would like to import more American oil if it came on competitive terms, sources said.
"Our goal remains to get to zero oil purchases from Iran as quickly as possible. The United States government now is in the middle of an internal process to consider significant reduction exemptions for individual countries".
India had imported about 22 million tonnes of crude oil from Iran in 2017-18 and initially planned to raise that to about 30 million tonnes in 2018-19. While the outline of waivers for India and South Korea was agreed, no final decision has been made and an announcement is unlikely before the sanctions are reimposed, according to Asian officials with knowledge of the matter.
Iranian exports that can be tracked dropped to below 2 million bpd as early as in August, and analysts expected at the time that further steep drop-offs were imminent.
Brent and US crude posted their biggest monthly percentage decline since July 2016 in October, with Brent down 8.8 percent for the month and USA crude losing almost 11 percent.
The concessions have reportedly sparked outrage among USA officials who take a hardline attitude towards Iran, even causing White House National Security Advisor John Bolton to decline to participate in the sanctions rollout on November, 4.
Iran will reportedly continue doing business on SWIFT, and the United States administration will extend waivers to several countries allowing them to continue purchasing Iranian oil - a concession that was mulled earlier in September, sources said.
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