Saturday , July 2 2022

Oil falls under good deliveries and exemptions from Iran's sanctions


SINGAPORE (Reuters) – Oil prices fell Wednesday as expectations of good market assets that increase as production increases and exceptions to US sanctions allow Iran to buy large raw from Tehran to keep its raw material.

At 0750 GMT, Brent crude was $ 71.83 per barrel, down 30 cents, or 0.4 percent, from the previous closing.

US WTI raw was $ 61.84 per barrel, down 37 cents, or 0.6 percent.

Brent crude and Western Texas Intermediate fell 17.4 percent and 19.7 percent respectively from a four-year high in October.

"Oil sales were caused by surplus crude oil" caused by higher production while "Iranian supplies are still on the market," said JP Morgan.

Washington reintroduced sanctions on Iranian oil exports on Monday but granted exception to Tehran's best customers, allowing for limited imports for the next 180 days.

Iran's exports have fallen to 1 billion bpd since the beginning of November, according to data from Rafinetiv, from around 3 million bpd in mid 2018.

But Iranian supplies are expected to increase after November, using exceptions to start buying more Iranian oil.

Unlike Iran, Morgan Stanley says "deliveries continue to be higher than expected, especially from the US and OPEC members in the Middle East, Russia and Libya."


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