India, the world's third-biggest oil importer, is facing record high retail prices as global crude rate soared and rupee value dipped.
"India is projected to see the largest additional oil demand (3.7% per annum) and the fastest growth in the period to 2040", said Mohammed Sanusi Barkindo, secretary general of the Organization of the Petroleum Exporting Countries (OPEC). Saudi Arabia, which initially declared they didn't know who the journalist was, has changed their officialy narrative multiple times, claiming that the journalist had left the embassy and then gone missing, and now the Saudi kingdom is stating that the journalist may have been slain in a "botched interrogation", leading the major oil producer head-first into a major political clash, which will bode poorly for oil costs.
Jahangiri said some countries that have stopped importing oil from Iran are looking for workarounds that would allow them to continue to import energy from Iran indirectly.
USA crude inventories fell by 2.1 million barrels last week, compared with analyst expectations for a build of 2.2 million barrels, American Petroleum Institute data showed after Tuesday's settlement.
The Times of Israel reported that Iran also may have reached a deal with Russia last month to take delivery of Iranian crude oil and then refine it and sell it to global buyers, in yet another possible scheme to bypass US sanctions by "laundering" the oil through Russian markets. US President Donald Trump had in May withdrawn from the 2015 nuclear accord with Iran, re-imposing economic sanctions against the nation. Under the 2015 nuclear pact, most worldwide sanctions against Tehran were lifted in 2016 in exchange for Iran curbing its nuclear program.
Reuters reported on October 15 that oil tankers continued to carry Iranian oil exports to China, India, Turkey, Italy, and a few other destinations earlier this month, one month ahead of the reimposition of oil sanctions.
"The oil market is suffering from short supply and this can not be resolved by words".
Brent crude prices were trading 80 cents a barrels higher at $81.23 by 11.57 GMT.
The Schork Report Founder Stephen Schork discusses why low oil prices aren't necessarily good for the economy and how high prices are a reflection of a strong economy.