Many analysts say they expect Iranian exports to drop by around 1 million barrels per day (bpd).
"Our Indian friends have always been categorical in terms of their intention to continue economic cooperation and (the) import of oil from Iran".
U.S. crude exports can not increase rapidly enough to replace Iranian barrels, until the Permian pipeline bottleneck eases in mid-2019.
Worldwide benchmark Brent crude oil futures were at $83.26 per barrel at 0352 GMT, down 90 cents, or 1.1 percent, from their last close.
Both Organization of the Petroleum Exporting Countries (Opec) and non-Opec members have been making a production cut to lift the subdued crude prices.
On a related matter, Reuters reported on October 5 that Indian crude importers intend to keep buying oil from Iran in November after us sanctions go into effect and are seeking a waiver from the sanctions from Washington. Saudi Arabia at present produces 10.7 million barrels per day.
The kingdom has lifted production nearly to a record and might raise it again next month, although doing so will infringe on available spare capacity, limiting Saudi Arabia's ability to react to other supply shocks.
Meanwhile, the US Energy Information Administration (EIA) reported a huge increase in weekly crude oil inventories.
WASHINGTON - The Trump administration signaled for the first time on Friday it will consider sanctions waivers for countries that have significantly reduced, but not completely eliminated, their intake of Iranian oil.
Following the U.S. exit, Iran and the remaining parties launched talks to save the accord. India accounted for 12 per cent of United States crude exports in June.
India's purchases of U.S. crude oil have fallen by 75 percent over the past four months as the subcontinent stocks up on Iranian crude, Reuters has reported. Throughout the week, hedge funds and speculators were active in the market, buying at dips and pushing prices up.
Reports that emerged this week citing unnamed sources claim that the Saudis and Russians had already agreed (without the rest of OPEC) at the end of September to "quietly" raise output through December to keep oil prices under control.
"A strong economy, low unemployment would suggest the USA consumer is going to continue to fare well with higher energy prices", said Phil Flynn, an analyst at Price Futures Group in Chicago. "But the price for the Saudi strategy to cover those supply losses are extreme low spare capacity, and that worries the market".