This exemption is in addition to "temporary allotments" - Significant Reduction Exemptions -from sanctions that the United States announced for India and seven major importers of Iranian crude oil on Monday, when the second and final round of sanctions went into effect fully.
Futures in NY fell as much as 0.9 percent and headed for an 8.5 percent drop in eight straight sessions. USA crude inventories gained 5.78 million barrels last week, according to the Energy Information Administration. At the same time, Washington temporarily exempted eight nations from the sanctions on importing oil from Iran.
Although the markets are stabilizing early Wednesday, they remain under tremendous pressure ahead of today's U.S. Energy Information Administration's weekly inventories report, due at 1530 GMT.More news: Kentucky clerk who refused to issue same-sex marriage licenses voted out
The United States would be better off rethinking its "unconditional support" for Saudi Arabia and Israel, which has "blinded the USA to their appalling atrocities", Zarif said.
The top USA diplomat has granted an exception to certain U.S. sanctions that will allow the India-led development of a port in Iran as part of a new transportation corridor created to boost Afghanistan's economy, a State Department spokesman said on Tuesday. "There were more bearish overtones in terms of supply with the American crude output seen rising this year by the most ever, coupled with the call on OPEC to ramp up even higher". This is about a third of the nearly 100 billion bpd of global consumption.
Brent futures for January settlement climbed 76 cents to US$72.89 on the London-based ICE Futures Europe exchange, after falling 1.4 per cent on Tuesday. The global benchmark crude traded at a $10 premium to WTI for the same month. Meanwhile, the USA government forecast that its own oil output will increase at a record pace this year. Analysts had predicted a draw of 2.572 million barrels for the week.More news: Red Dead Redemption 2 Video Comparison With Original RDR
The API also reported a draw in gasoline inventories for the week-ending November 2 in the amount of 1.2 million barrels.
Futures in NY gained 0.6 per cent. Ministers from the Organization of Petroleum Exporting Countries gathering in Abu Dhabi this weekend will discuss options for 2019 including the scenario of supply curbs, delegates said. Further drop in Iranian production is expected but the extent will depend on negotiations between the USA and countries potentially seeking waivers, Fatih Birol, IEA Executive Director, said in an interview. Off-topic, inappropriate or insulting comments will be removed. All comments are subject to editorial review.More news: NASA explains this 'flying saucer' that crash-landed in Utah