The Hindustan Times had earlier reported Chabahar had been possibly given an exemption as it had not figured in the comprehensive list of 700 sanctioned Iranian individuals and entities - 400 from the earlier rounds of sanctions and 300 new - that was published by the United States treasury department on Monday.
Futures in NY fell as much as 0.9 percent and headed for an 8.5 percent drop in eight straight sessions.
Oil rose as OPEC and its allies were said to plan talks on fresh production cuts next year, responding to recent increases in crude inventories amid surging US supply. Ministers from the Organization of Petroleum Exporting Countries will gather in Abu Dhabi this weekend to discuss options for 2019 including the possibility of cutting production again next year. The group led by Saudi Arabia will gather in Abu Dhabi this weekend as they face a fresh surge of USA shale oil threatening to unleash a new surplus in 2019. This is down from more than 2 million bpd it averaged previous year.
The U.S. spokesperson said that President Donald Trump's South Asia strategy was focused on economic growth for Afghanistan and a "close partnernship" with India and the U.S seeks to maintain a close relationship with both countries as they pursue a "policy of maximum pressure" against Iran. This is about a third of the nearly 100 billion bpd of global consumption.
Brent futures for January settlement declined 66 cents to $71.47 on the London-based ICE Futures Europe exchange. The contract fell 1.4 percent to close at $72.13 on Tuesday. The global benchmark crude traded at a $10 premium to WTI for the same month.
In the USA, the government is estimating the biggest yearly increase in domestic crude production.
Saudi Arabia and Russian Federation are being forced to reduce production after their plan on reversing cuts backfired, Iran's representative to OPEC said, pegging the potential cut at more than 1 million barrels a day.
The EIA report showed domestic crude production jumped to 11.6 million barrels a day, while stockpiles at Cushing, Oklahoma, rose by 2.42 million barrels.
When asked on the fate of Chabahar Port after the USA reimposed all its sanctions on Iran, the spokesperson said, "This exception relates to reconstruction assistance and economic development for Afghanistan". That will allow South Korean and Iranian companies to continue their extensive exchanges in various fields.
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