Prince Mohammed told Bloomberg on Friday that the kingdom had met its promise to Washington to make up for Iranian oil supplies lost through U.S. sanctions, reimposed when the United States exited a 2015 nuclear deal between Tehran and six powers. Pradhan admitted Monday he was not sure India would get a waiver.
Delhi is hopeful that Saudi Arabia and other members of the Organization of Petroleum Exporting Countries will heed USA calls for production to be boosted by one million barrels per day, as promised in June, which might help bring benchmark prices down.
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.
Last week, India reduced gasoline and diesel prices to give relief to consumers against rising global crude prices caused by uncertainty over U.S. sanctions on Iran and OPEC's decision to raise output.
The comments followed news that India, Iran's No. 2 oil customer after China, will buy 9 million barrels of Iranian oil in November. The industry has been worrying that an entirely effective ban on Iranian oil exports would strain supplies.
India has a strong trade and diplomatic relationship with both Iran and the US.
India had diversified its oil supplies to cushion the impact of sanctions, he said.
Oil traders initially reacted to a selloff in Chinese stocks, but as the USA stock market opened higher, "we've pulled back dramatically", said Mark Anderle, an energy trader at TAC Energy.
US market participants also reacted to a bullish report by market intelligence firm Genscape showing crude inventories recently fell at the USA storage hub in Cushing, Oklahoma, analysts said.
"Such brags would only satisfy Mr. Trump but the market would never buy such a claim", Iran's oil ministry's news service Shana quoted Zanganeh as saying, in response to last week's remarks by Saudi Crown Prince Mohammed bin Salman that the Saudis were offsetting Iranian losses and even more.
Ralph Leszczynski, Banchero Costa's head of research in Singapore, tells TradeWinds: " The US sanctions on Iranian oil imports are strictly unilateral, as they have been actively resisted by other buyers of Iranian oil.
"A source said: "It is still early to say how India will settle its trade with Iran", and said it may consider paying for the oil with the rupee currency".