Crude oil futures fall 1.44% on weak global cues

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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.

"The Iran factor is the primary near-term price driver and as such spikes will be the norm in the coming weeks", Stephen Brennock, oil analyst at PVM Oil Associates, said in a research note published Wednesday.

Kenyan consumers will feel the pinch most, as a rise in oil prices would wipe out the relief President Uhuru Kenyatta pushed for last month after pump prices reached $1.28 in the wake of a 16 per cent tax on petroleum products.

The global benchmark crude traded at a US$9.96 premium to WTI for the same month.

Brent crude, the worldwide benchmark LCOc1, was down $1.07 to $83.09 per barrel at 0817 GMT. Since April this year the exports have been falling.

"Iran has been off-and-on taking rupee payments for oil it sells". Innes warned that limited spare production to deal with further supply disruptions meant "the capacity is quickly declining due to Asia's insatiable demand".

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Iran's key oil customers are opting for more medium sour crudes from Saudi Arabia, Iraq, Russia and UAE, which is causing prices of these grades to soar and putting pressure on global refinery margins.

"We are going into interesting times once the Iranian sanctions kick in", he said. It further added that this is the longest streak of weekly cuts since October past year. Other investors are betting on the continued rise in prices expecting nearly 1.2 Billion barrels of oil. Last month, the group appeared to rebuff his calls for a rapid production increase to offset the drop in Iranian shipments, prompting a surge in prices and even harsher rhetoric. Additionally, a report that Saudi Arabia stands ready to replace any potential shortfall from Iran also weighed on prices.

Hedge funds cut their bullish wagers on US crude in the latest week to the lowest level in almost a year, data showed on Friday.

November will probably be higher, he said, potentially breaking the Saudi production record set in November 2016.

The Saudi prince claimed in the Bloomberg interview that the kingdom could push its capacity beyond 12 million barrels a day with additional investment, and that extra supplies are also available from its allies in the Persian Gulf region.

The early price action indicates that the weaker longs believe this weekend's news enough to reduce positions and book a little profit.