Oil prices this year could surge up to $80 a barrel due to the increasing demand for the gasoline and disruptions in crude supplies from Nigeria, said a senior Iranian oil official.
Shipping Corporation of India's oil tanker, MT Desh Shanti, which was detained in Iran for 26 days, arrived at Visakhapatnam port in the early hours on Wednesday, sources said.
Imports increased by 4.5 per cent, the highest growth in the last six months as crude oil and gold shipments shot up in the month.
India will pay Iran $900 million in two tranches beginning next week to clear part of the past dues for crude oil it buys from the Persian Gulf nation.
The surge in oil prices has also affected the rupee, which hit a 6-week low of 70.25 on Friday against the dollar.
The dollar strengthened against major world currencies.
India, with the increases already made in the January-March loading plans from Iran, has to cut its purchases of the crude to about 110,000 barrels per day.
Tehran plans to lift exports by 500,000 barrels per day
Oil Minister M Veerappa Moily has suggested pricking the ballooning oil bill with everything from a street theatre campaign encouraging lower fuel use, to shutting fuel stations, to increasing imports from Iran.
Skittish investors snapped up gold and other safe-haven assets amid fears of a global economic slowdown
Replacing Iran, which is India's third largest oil supplier behind Iraq and Saudi Arabia, will not be a problem but margins will be hit as Tehran offers the best commercial terms
Oil has slumped from above $115 in June 2014 as shale oil from the United States has flooded the market
India's Iran imports rise to 276,800 bpd vs 195,600 bpd in 2013.
Emirates and Etihad Airways have over the past year continued to lobby India to allow them more flight slots, which won't be possible until the 2007 pact is revised.
Persistent fall in crude oil prices affected the market sentiment
Oil prices dipped on Wednesday as the market prepared for a gradual increase of Iranian exports into an already oversupplied market from 2016.
US crude is now more than 17 per cent below its opening price at the start of the month and Brent is down more than 16 per cent.
The broader NSE Nifty, after cracking the 10,600-mark, ended 82.30 points, or 0.77 per cent, lower at 10,589.10.
A sharp decline in crude and strengthening of the rupee added to the buoyancy.
OPEC agrees to keep pumping as oil glut fears persist.
President Trump, in a move that could have implications on India's energy security, on Monday decided not to grant sanctions exemptions to any oil customers of Iran, further squeezing Tehran's top export commodity.
Sectors, which, recorded healthy export growth included electronics, engineering, chemicals, pharma and tea.
India's imports from Iran rose to 250,200 barrels per day
The falls meant that both crude futures were at their lowest levels since mid-April
Rupee is likely to remain under pressure due to domestic concerns.
The reimposition of sanctions on Iran will have major impact on countries like India, with which it has traditional and historic trade relationship.
An obscure Indian bank has been an unlikely beneficiary of Western sanctions against Iran, handling billions of dollars from frozen oil payments that boosted its interest margins, but is now having to prepare itself for life after the windfall.
America had postponed the much-awaited dialogue due to "unavoidable reasons" last month.
The US has told India and other countries to cut oil imports from Iran to 'zero' by November 4 or face sanctions.
Overall forex market sentiment suffered a sudden reversal of fortune contrary to expectation largely moving in line with local equities, reversing all early strong gains.
Belgian-born Rich, whose trading group eventually became the global commodities powerhouse Glencore Xstrata, died in hospital from a stroke.
India has been eyeing deeper energy ties with Iran and has already lined up $20 billion as investment in oil and gas as well as in petrochemical and fertiliser sectors there.
The delegation led by Qasemi arrived on Sunday with the aim of persuading New Delhi to step up both oil imports and investment in the OPEC-member's oil and gas sector.
'Tehran,' Foreign Minister Zarif said, 'had expected the Modi government to be "more resilient" in the face of Washington's bullying,' notes Ambassador M K Bhadrakumar.
The immediate concern for the rupee is the sharp spike in oil prices
Jewellery stores remained deserted as buyers deferred their non-essential purchases awaiting softness in gold prices.
Sharp fall in domestic stock market also affected the rupee sentiment.
The US has slapped sanctions against a number of international companies and individuals for evading sanctions against Iran and for providing support for its contentious nuclear programme.
Iran on Thursday ordered a release of an Indian tanker seized by it in Persian Gulf while carrying crude from Basrah in Iraq and taken to its Bandar Abbas Port 24 days ago.
