India to US: Will take steps on energy security

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Previously, the administration had said only that countries should make a "significant reduction" in their imports of Iranian oil or be subject to separate USA sanctions prohibiting all transactions between their central banks and Iran's central bank.

U.S. West Texas Intermediate (WTI) crude futures were at $70.79 a barrel, up 26 cents, or 0.3 percent.

Meanwhile, U.S. total domestic crude output stood at 10.9 million barrels a day last week, unchanged from the previous week, said the EIA.

The US on Wednesday asked all countries to stop oil imports from Iran by November 4 this year, adding that waivers are unlikely. Iran is India's third-largest oil supplier behind Iraq and Saudi Arabia. Reacting to the US Embassy statement, MEA Spokesperson Raveesh Kumar said, "After seeing the press statement by the US Embassy, that speculation should have been put to rest".

"That was a massive draw, a draw that we haven't seen in quite some time", said Tariq Zahir, a commodity fund manager at Tyche Capital Advisors LLC.

Stocks were also propelled upward by shares of consumer discretionary companies and by General Electric Co, whose shares rose 7.8 percent after the company said it would spin off its healthcare business and divest its stake in oil-services company Baker Hughes.

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India is one of the biggest purchasers of oil from the Islamic Republic, buying more Iranian crude than any country except China.

"If we assume that OPEC and its allies will deliver a near 1 million barrels per day (bpd) increase in production, most of it will be offset by lower volumes out of Iran". The biggest importer of Iranian oil past year was China. When people thought the United States share producers will be knocked out when oil process had fallen to $35 a barrel, a lot of them showed that technical innovation can really bring down prices at a pretty quick scale and I think that's what happened.

Extra barrels from Opec are estimated at 800,000 bpd, with Russian Federation chipping in with 200,000 bpd.

Iran may be Russia's ally in the Syrian conflict but when it comes to oil, Tehran's arch-enemy Saudi Arabia takes precedence - if last week's OPEC meeting in Vienna is anything to go by.

Unless demand falls back, or some of these outages dissipate, oil prices could be heading much higher. "We are serious about our efforts to pressure Iran to change its threatening behavior", the official said. The move is most likely in anticipation of the USA sanction on Iran that will severely tighten global supply, even though it was announced ahead of the State Department Action. Trump also complained that the agreement did not cover Iran's non-nuclear malign behavior.

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