Photo: Ali Muhammad, Bloomberg
Oil has fallen to a seven-month low, as concern is relieved that the US sanctions on Iran will squeeze supplies around the world.
Oil closed in New York on Monday after climbing earlier, when US sanctions against OPEC's No. 3 official kicked in. The Trump administration gave concessions to China to seven other major buyers so that they could continue to buy some Iranian oil.Meanwhile, The expansion of local inventories worried the concern of tightening global supplies.
"The reality of the downside is that there will be some oil from Iran in the market, but it will still be an amount that the market is going to miss," said John Kilduff, a hedge fund partner in New York. .
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Oil slipped from a four-year high last month, as speculation surged that Washington would make concessions to lower gasoline prices ahead of US elections, while other producers in the Organization of the Petroleum Exporting Countries pledged to offset all supply gaps, while the trade war between the world's two largest economies Has raised concern that fuel demand will suffer even when President Donald Trump said he wants to reach an alliance with China.
At the central crossroads of Cushing, Oklahoma, crude oil prices were probably up 2.1 million barrels last week, according to a Bloomberg forecast.
The price of West Texas crude for December lost 4 cents to the end of the session at $ 63.10 a barrel on the New York Mercantile Exchange. Futures fell by 6.6% last week. Total trading volume on Monday was about 10% below the 100-day average.
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Brent futures for January added 34 cents to settle at $ 73.17 on ICE Futures. The global benchmark index traded at a premium of $ 9.96 per WTI this month.
US Secretary of State Mike Pompeo said the campers would only allow temporary purchases of Iranian oil. Iran can change its behavior or see the collapse of the economy, he said.
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