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Oil prices saw declines of more than 1% on Monday as US officials report potential sanction waivers to the nations which show efforts to reduce their imports of Iranian oil.
International Brent oil futures fell upon the news, at $83.53 per barrel, down 63cents from their last close.
US West Texas Intermediate crude futures (WTI) fell 39cents at $73.95 a barrel.
A US government official said on Friday, Washington was considering granting exemptions to countries that show progress to reduce their Iranian oil imports.
The Us oil drilling rig count has fallen consecutively for three weeks, after drillers cut two oil rigs in early October, bringing the total down to 861, according to energy services firm Baker Hughes.
Analysts say this might not be the end of the fall in oil prices, with predicttions Brent oil may slide further.
This comes after President Trump announced the US will sanction Iran’s crude oil exports as early as November 4th, putting pressure on governments and companies to cut their Iranian oil imports to zero.
India’s government is already planning to ask state oil firms to lock in their crude futures purchase price, anticipating spikes.
Last week, industry sources said India will continue to buy Iranian oil despite the sanctions, according to a Reuters report.
Industry sources claim India will buy 9 million barrels of Iranian oil in November.
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