Insurance companies not covering storage of Iranian oil, says Indian Oil official

Oil Rises as Saudi Arabia Vows to Hit Back Against Any SanctionsMore

Oil Rises as Saudi Arabia Vows to Hit Back Against Any SanctionsMore

Asked whether India has sought waiver from the U.S. related to Iranian oil imports as Indian oil firms have booked Iranian oil cargo for November, he said "sentiment" rather than availability is the issue.

"The oil price pain being now felt would have been much worse if we had believed people who 4-5 years ago said that oil demand had peaked and would decline", Mr. Al-Falih added.

Washington said this month it would consider waivers for Iranian oil buyers such as India, although it said they would eventually have to halt imports from Iran, the third biggest oil producer in the Organization of the Petroleum Exporting Countries.

Brent crude was down 80 cents a barrel at $79.98 by 0825 GMT. USA light crude was 40 cents lower at $71.38. "Rising U.S. oil production is one key reason why the globaloil market is likely to be amply supplied next year".

The US special envoy for Iran said on Monday the United States aims to cut Iran's oil sales to zero.

Al-Falih explained that a number of segments were being considered such as petrochemicals, refining, crude oil storage and retail petroleum as well as solar energy He added that Saudi Arabia's largest mining company, Maaden, was looking to make inroads into India's fertiliser industry, specifically the production of phosphate fertiliser.

Iran has lost some customers for its oil because of looming US sanctions, but high prices are making up for the lost sales, Iranian Vice President Eshaq Jahangiri has said.

USA oil supplies are over-burdened according to reporting, but American crude will do little to help Eastern energy needs.

A day after Saudi Arabia said it would retaliate to any possible USA sanctions over the disappearance of a journalist, which led to a spurt in Brent crude prices, the world's largest oil exporter struck a conciliatory tone in India.

Saudi Aramco has an initial pact to take a 25 percent stake in the planned 1.2 million bpd West Coast refinery.

That is a sharp drop from 2.5 million bpd in April before U.S. President Donald Trump withdrew from a nuclear deal with Iran in May and ordered the re-imposition of sanctions.

"To strengthen relations with India is a strategic priority of the Kingdom of Saudi Arabia", he said.

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