<a href="https://www.wionews.com/india-news/india-is-engaging-with-united-states-for-second-iran-oil-waiver-mea-207973">Indian refiners </a>are holding back from ordering Iranian oil for loading in May pending clarity on whether Washington will extend a waiver from US sanctions against the OPEC-member, four sources said.

In November, US President Donald Trump withdrew from the 2015 Iran nuclear deal and re-imposed broad economic sanctions.

Washington, however, gave a six-month <a href="https://www.wionews.com/world/us-to-give-iran-oil-sanctions-waiver-to-eight-countries-including-india-south-korea-japan-report-175107">waiver to eight nations </a>including India, allowing them to import some Iranian oil until early May. India, Iran's top oil client after China, was allowed to buy about 9 million barrels a month.

India hopes to get clarity in seven to 10 days on any extension of the waiver, as well as the amount of oil that could be purchased if an extension is given, the sources said.

"We don't know about US thinking, whether they will allow India to buy oil or not," said one of the sources, all of whom declined to be named due to the sensitivity of the issue.

Under the current waiver, India can buy about 300,000 bpd of Iranian oil - about half the amount before the sanctions were imposed - and New Delhi wants to keep buying Iranian oil at that level, Indian sources said last month.

Since November only state-run Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum and Mangalore Refinery and Petrochemicals have been buying Iranian oil.

State-refiners and India's oil ministry did not respond to Reuters request for comments.

Brian Hook, the special US envoy for Iran, in March said Washington is pursuing its plan to bring Iranian crude exports to zero. Last week Hook said three of eight importers granted waivers by Washington have cut shipments to zero.

"Sanctions against IRGC (Islamic Revolutionary Guard Corps) have also added to the uncertainty over supply of Iranian oil ... in the current scenario when enough alternatives are available it is better to wait for a clarity," said another of the sources.

Trump on Monday designated Iran's Guards a foreign terrorist organization. Iran's president Rouhani said Tehran will resist US pressure and hailed IRGC as defenders of Iranians.

Indian refiners are holding back from ordering Iranian oil for loading in May pending clarity on whether Washington will extend a waiver from US sanctions against the OPEC-member, four sources said.

Indian refiners are holding back from ordering Iranian oil for loading in May pending clarity on whether Washington will extend a waiver from US sanctions against the OPEC-member, four sources said. In November, US President Donald Trump withdrew from the 2015 Iran nuclear deal and re-imposed broad economic sanctions. Washington, however, gave a six-month waiver to eight nations including India, allowing them to import some Iranian oil until early May. India, Iran's top oil client after China, was allowed to buy about 9 million barrels a month. India hopes to get clarity in seven to 10 days on any extension of the waiver, as well as the amount of oil that could be purchased if an extension is given, the sources said. "We don't know about US thinking, whether they will allow India to buy oil or not," said one of the sources, all of whom declined to be named due to the sensitivity of the issue. Under the current waiver, India can buy about 300,000 bpd of Iranian oil - about half the amount before the sanctions were imposed - and New Delhi wants to keep buying Iranian oil at that level, Indian sources said last month. Since November only state-run Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum and Mangalore Refinery and Petrochemicals have been buying Iranian oil. State-refiners and India's oil ministry did not respond to Reuters request for comments. Brian Hook, the special US envoy for Iran, in March said Washington is pursuing its plan to bring Iranian crude exports to zero. Last week Hook said three of eight importers granted waivers by Washington have cut shipments to zero. "Sanctions against IRGC (Islamic Revolutionary Guard Corps) have also added to the uncertainty over supply of Iranian oil ... in the current scenario when enough alternatives are available it is better to wait for a clarity," said another of the sources. Trump on Monday designated Iran's Guards a foreign terrorist organization. Iran's president Rouhani said Tehran will resist US pressure and hailed IRGC as defenders of Iranians.

India delays May order for Iran oil, awaits clarity on sanctions waiver: Report

Saudi Arabia's energy minister Khalid al-Falih has said that the kingdom is committed to meeting India's rising oil demand and is the "shock absorber" for supply disruptions in the oil market.

As fuel prices continued to surge in India, OPEC's secretary general &nbsp;Mohammed Sanusi Barkindo said that India's oil demand will rise to 5.8 million barrels per day (bpd) by 2040.

<a href="http://www.wionews.com/business-economy/fuel-prices-soar-again-petrol-sells-at-rs-8283-per-litre-in-delhi-171649">Also Read: Fuel prices soar again, petrol sells at Rs 82.83 per litre in Delhi</a>

The OPEC secretary general's projection comes after the International Energy Agency(IEA) in a report said that &nbsp;"both global oil demand and supply are now close to new, historically significant peak" at 100 million barrels a day.

The IEA had pointed out that potential supply could come to the market from Iran, Iraq, Libya, Nigeria and Venezuela even as it pointed out that production has surged led by the US shale revolution and supported by big increases in Brazil, Canada.

"India is projected to see the largest additional oil demand (3.7 percent per annum) and the fastest growth in the period to 2040," Barkindo said, adding, that global oil demand is expected to increase to 14.5 million bpd from 2017 to 111.7 million bpd in 2040.

Barkindo also said that the oil sector needed $11 trillion in investment&nbsp;till 2040 as demand explodes worldwide.

"Our view is that the market is currently adequately supplied and well balanced. For 2019, there is the potential for an imbalance, due to larger growth in supply," he said.

Meanwhile, oil prices continued to surge ahead of US sanctions on Iranian oil which is set to kick-in from November 4th.&nbsp;

Iran has exported 1.33 million barrels per day (bpd) to countries including India, China and Turkey in the first two weeks of October, according to Refinitiv Eikon data. That was down from 1.6 million bpd in September, the data showed.

The disappearance of Saudi journalist Jamal Khashoggi also led to increase in oil prices&nbsp;after President Trump threatened "severe punishment" for Saudi Arabia, the biggest oil producer, if the journalist is found to have been killed inside the Saudi consulate in Istanbul.

Saudi Arabia's energy minister Khalid al-Falih has said that the kingdom is committed to meeting India's rising oil demand and is the "shock absorber" for supply disruptions in the oil market.

Saudi Arabia's energy minister Khalid al-Falih has said that the kingdom is committed to meeting India's rising oil demand and is the "shock absorber" for supply disruptions in the oil market. As fuel prices continued to surge in India, OPEC's secretary general Mohammed Sanusi Barkindo said that India's oil demand will rise to 5.8 million barrels per day (bpd) by 2040. Also Read: Fuel prices soar again, petrol sells at Rs 82.83 per litre in Delhi The OPEC secretary general's projection comes after the International Energy Agency(IEA) in a report said that "both global oil demand and supply are now close to new, historically significant peak" at 100 million barrels a day. The IEA had pointed out that potential supply could come to the market from Iran, Iraq, Libya, Nigeria and Venezuela even as it pointed out that production has surged led by the US shale revolution and supported by big increases in Brazil, Canada. "India is projected to see the largest additional oil demand (3.7 percent per annum) and the fastest growth in the period to 2040," Barkindo said, adding, that global oil demand is expected to increase to 14.5 million bpd from 2017 to 111.7 million bpd in 2040. Barkindo also said that the oil sector needed $11 trillion in investment till 2040 as demand explodes worldwide. "Our view is that the market is currently adequately supplied and well balanced. For 2019, there is the potential for an imbalance, due to larger growth in supply," he said. Meanwhile, oil prices continued to surge ahead of US sanctions on Iranian oil which is set to kick-in from November 4th. Iran has exported 1.33 million barrels per day (bpd) to countries including India, China and Turkey in the first two weeks of October, according to Refinitiv Eikon data. That was down from 1.6 million bpd in September, the data showed. The disappearance of Saudi journalist Jamal Khashoggi also led to increase in oil prices after President Trump threatened "severe punishment" for Saudi Arabia, the biggest oil producer, if the journalist is found to have been killed inside the Saudi consulate in Istanbul.

As US sanctions on Iran loom, Saudi Arabia says it will meet India's oil demand

With a tougher round of US sanctions on Iran coming into effect from November 4, a top Trump administration official said Washington recognises India's need for significant oil imports and is having conversations to ensure there are alternative supplies of the fuel "so that our friend India's economy is not adversely affected".

Earlier this year, the US had withdrawn from the 2015 Iranian nuclear deal and reimposed a series of tough sanctions on Iran.&nbsp;

While the first phase of sanctions is already in place, the sanctions would come into full force on November 4 and the US expects all countries, including India, to bring down their import of Iranian oil to zero by then.

The US has made it clear that any country that continues to do business with Iran will be blocked from accessing the American banking and financial system.&nbsp;

However, the sanctions are not endorsed by the UN and it has been a traditional policy of India to enforce only UNSC-authorised sanctions.&nbsp;

Though India, one of the biggest importers of Iranian oil, has already reduced its import, it has indicated that it is unlikely to go down to zero given its massive energy needs.&nbsp;

"The United States is consulting with all of its friends and partners to discuss the implementation of the sanctions after the snapback...We recognise India has a need for significant oil imports. Part of the conversation is how to ensure that there are alternative supplies of oil so that our friend India's economy is not adversely affected," Principal Deputy Assistant Secretary for the Bureau of South and Central Asia Region Alice Wells told.

She said Indian private sector firms are exploring new suppliers of crude oil and the conversation between the US and Indian experts continues on the implementation of the sanctions, adding that America looks forward to continuing what is a very constructive dialogue.

When asked about the impact of the US sanctions on projects such as the Chabahar project, Wells said the issue of Chabahar is under close review.&nbsp;

"We very much appreciate what India has done to provide both assistance to Afghanistan, including through using Chabahar Port for the delivery of wheat. We also very much appreciate what India has done to allow Afghanistan to diversify its trade relationships, and again Chabahar has played a role there. So those factors will certainly be taken under consideration," she said.&nbsp;

The Chabahar port is being considered a gateway to golden opportunities for trade by India, Iran and Afghanistan with central Asian countries besides ramping up trade among the three countries in the wake of Pakistan denying transit access to New Delhi.

In May 2016, India, Iran and Afghanistan had inked a pact which entailed the establishment of Transit and Transport Corridor among the three countries using Chabahar Port as one of the regional hubs for sea transportation in Iran, besides multi-modal transport of goods and passengers across the three nations.&nbsp;

With a tougher round of US sanctions on Iran coming into effect from November 4, a top Trump administration official said Washington recognises India's need for significant oil imports and is having conversations to ensure there are alternative supplies of the fuel "so that our friend India's economy is not adversely affected".

With a tougher round of US sanctions on Iran coming into effect from November 4, a top Trump administration official said Washington recognises India's need for significant oil imports and is having conversations to ensure there are alternative supplies of the fuel "so that our friend India's economy is not adversely affected". Earlier this year, the US had withdrawn from the 2015 Iranian nuclear deal and reimposed a series of tough sanctions on Iran. While the first phase of sanctions is already in place, the sanctions would come into full force on November 4 and the US expects all countries, including India, to bring down their import of Iranian oil to zero by then. The US has made it clear that any country that continues to do business with Iran will be blocked from accessing the American banking and financial system. However, the sanctions are not endorsed by the UN and it has been a traditional policy of India to enforce only UNSC-authorised sanctions. Though India, one of the biggest importers of Iranian oil, has already reduced its import, it has indicated that it is unlikely to go down to zero given its massive energy needs. "The United States is consulting with all of its friends and partners to discuss the implementation of the sanctions after the snapback...We recognise India has a need for significant oil imports. Part of the conversation is how to ensure that there are alternative supplies of oil so that our friend India's economy is not adversely affected," Principal Deputy Assistant Secretary for the Bureau of South and Central Asia Region Alice Wells told. She said Indian private sector firms are exploring new suppliers of crude oil and the conversation between the US and Indian experts continues on the implementation of the sanctions, adding that America looks forward to continuing what is a very constructive dialogue. When asked about the impact of the US sanctions on projects such as the Chabahar project, Wells said the issue of Chabahar is under close review. "We very much appreciate what India has done to provide both assistance to Afghanistan, including through using Chabahar Port for the delivery of wheat. We also very much appreciate what India has done to allow Afghanistan to diversify its trade relationships, and again Chabahar has played a role there. So those factors will certainly be taken under consideration," she said. The Chabahar port is being considered a gateway to golden opportunities for trade by India, Iran and Afghanistan with central Asian countries besides ramping up trade among the three countries in the wake of Pakistan denying transit access to New Delhi. In May 2016, India, Iran and Afghanistan had inked a pact which entailed the establishment of Transit and Transport Corridor among the three countries using Chabahar Port as one of the regional hubs for sea transportation in Iran, besides multi-modal transport of goods and passengers across the three nations.

Exploring alternative oil supplies to 'our friend India': US 

Iran is readying the first commercial exports of its West Karoun crude oil grade for May or June, two sources familiar with the matter said, even as fresh economic sanctions against the country loom.

Iran has already been shipping samples of the grade to customers since production from the West Karoun oilfields in southwest Iran nearly doubled in the past year to 300,000 barrels per day (bpd), the sources said. A new export facility allows West Karoun to be shipped directly rather than blended with other grades.

"Initial cargoes of West Karoun will be sold on a spot basis as the quality of the crude is yet to be established." said one of the two sources.

This means that buyers have no obligation to take regular amounts of the crude as they do under the long-term off-take agreements that are typical for Middle East oil sales.

Iran used to sell crude only under long-term deals before economic sanctions were imposed in 2012, but began spot sales after sanctions were lifted in 2016 to regain market share.

"Some refiners have taken the sample," the second source said, adding West Karoun is new production so Iran "needs to wait for the quality to stabilise".

Iran's effort to develop demand for West Karoun suggests Tehran hopes to sell the oil even in the face of possible new sanctions.

The United States and some European countries agreed to impose the earlier economic sanctions to halt Iran's alleged nuclear weapons programme. The United States, China, Great Britain, the European Union, Russia and France agreed to lift the sanctions in return for Iran halting some nuclear activities and allowing inspections of atomic sites.

US President Donald Trump has threatened to pull out of the deal by not extending sanctions waivers when they expire on May 12, unless European signatories of the accord fix what he calls its "flaws".

Trump is scheduled to announce his decision on the nuclear deal at 2 pm EST (1800 GMT) on May 8, four days before the waiver decision.

Uncertainty over the United States' participation in the nuclear deal has partially fuelled a rally in global oil prices to over three-year highs.

The sanctions cut Iran's crude exports from a peak of 2.5 million bpd before 2012 to a little more than 1 million bpd. The country re-emerged as a major oil exporter when they were removed.

Trump is scheduled to announce his decision on the nuclear deal at 2 pm EST (1800 GMT) on May 8, four days before the waiver decision.

Iran is readying the first commercial exports of its West Karoun crude oil grade for May or June, two sources familiar with the matter said, even as fresh economic sanctions against the country loom. Iran has already been shipping samples of the grade to customers since production from the West Karoun oilfields in southwest Iran nearly doubled in the past year to 300,000 barrels per day (bpd), the sources said. A new export facility allows West Karoun to be shipped directly rather than blended with other grades. "Initial cargoes of West Karoun will be sold on a spot basis as the quality of the crude is yet to be established." said one of the two sources. This means that buyers have no obligation to take regular amounts of the crude as they do under the long-term off-take agreements that are typical for Middle East oil sales. Iran used to sell crude only under long-term deals before economic sanctions were imposed in 2012, but began spot sales after sanctions were lifted in 2016 to regain market share. "Some refiners have taken the sample," the second source said, adding West Karoun is new production so Iran "needs to wait for the quality to stabilise". Iran's effort to develop demand for West Karoun suggests Tehran hopes to sell the oil even in the face of possible new sanctions. The United States and some European countries agreed to impose the earlier economic sanctions to halt Iran's alleged nuclear weapons programme. The United States, China, Great Britain, the European Union, Russia and France agreed to lift the sanctions in return for Iran halting some nuclear activities and allowing inspections of atomic sites. US President Donald Trump has threatened to pull out of the deal by not extending sanctions waivers when they expire on May 12, unless European signatories of the accord fix what he calls its "flaws". Trump is scheduled to announce his decision on the nuclear deal at 2 pm EST (1800 GMT) on May 8, four days before the waiver decision. Uncertainty over the United States' participation in the nuclear deal has partially fuelled a rally in global oil prices to over three-year highs. The sanctions cut Iran's crude exports from a peak of 2.5 million bpd before 2012 to a little more than 1 million bpd. The country re-emerged as a major oil exporter when they were removed.

Iran prepares to export new oil grade amid sanctions threat: Sources

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India delays May order for Iran oil, awaits clarity on sanctions waiver: Report

As US sanctions on Iran loom, Saudi Arabia says it will meet India's oil demand

Exploring alternative oil supplies to 'our friend India': US

Iran prepares to export new oil grade amid sanctions threat: Sources