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Oil prices drop over two percent on Iran sanctions waivers

Reuters  |  NEW YORK 

By Stephanie Kelly

NEW YORK (Reuters) - prices fell on Tuesday, with U.S. crude futures sliding to an eight-month low, a day after granted sanction waivers to top buyers of Iranian and as said it had so far been able to sell as much as it needs to sell.

futures dropped $1.67, or 2.3 percent, to $71.50 a barrel, by 1:13 p.m. EST (1813 GMT). The global hit a session low of $71.18 a barrel, lowest since Aug. 16.

U.S. Intermediate (WTI) crude futures fell $1.52, or 2.4 percent, to $61.58 a barrel. The session low was $61.31 a barrel, the weakest since March 16.

said it had so far been able to sell as much oil as it needs and urged European countries opposed to U.S. sanctions to do more to shield

The on Monday restored sanctions targeting Iran's oil, and transport sectors and threatened more action. said aimed to bring Iranian to zero, but 180-day exemptions were granted to eight importers: China, India, South Korea, Japan, Italy, Greece, and

This group takes as much as three-quarters of Iran's seaborne oil exports, trade data shows, meaning the Islamic Republic will still be allowed to export some oil for now.

Industry estimates suggest Iran's have fallen 40 to 60 percent since Trump said in May he would reimpose sanctions. However, exemptions could allow exports to rise again after November.

Turkish said the country, a top importer of Iranian oil, would not abide by the sanctions, which he said were aimed at "unbalancing the world."

"The details on the Iran sanctions waivers are trickling out, and it appears much more Iranian oil will remain on the market in the near-term than previously thought," said John Kilduff, a at Management in New York.

Concerns about also weighed on prices. The trade dispute between the and threatens growth in the world's two biggest economies and currency weakness is pressuring economies in

On the supply side, U.S. is expected to average 12.06 million barrels per day (bpd) in 2019, passing the 12 million bpd milestone sooner than expected on surging domestic shale output, the said on Tuesday.

Output is rising from the world's top three producers. Russia, the and combined produced more than 33 million bpd for the first time in October, enough to meet more than a third of the world's almost 100 million bpd of

Top crude exporter has cut the December price for its Arab Light grade for Asian customers.

Hedge fund managers were net sellers of petroleum-linked futures and options last week.

on Tuesday lowered its price forecast for Brent, saying the global will stay at $77.5 per barrel to mid-2019.

GRAPHIC: Russian, U.S. & Saudi (


GRAPHIC: Iranian of 8 countries given waivers (

(Reporting by in New York, Shadia Nasralla in London and Henning Gloystein in Singapore; Editing by Mark Potter, and Susan Thomas)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, November 07 2018. 00:11 IST