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Oil prices under pressure after hit from Iran sanctions waivers

Reuters  |  LONDON 

By Nasralla

LONDON (Reuters) - prices fell on Tuesday after granted sanctions exemptions to top buyers of Iranian oil, as the market was left to work out the exact impact of the waivers.

Benchmark Brent crude futures were down 43 cents at $72.74 a barrel by 1507 GMT.

U.S. Intermediate crude futures were at $62.95 a barrel, paring some earlier losses but still down 15 cents after six sessions of falls and hovering near lows last seen in April.

The on Monday restored sanctions targeting Iran's oil, and transport sectors and threatened more action to stop what called its "outlaw" policies, steps called economic warfare and vowed to defy.

Although said the aim was to bring Iranian exports to zero, gave 180-day exemptions to eight importers - China, India, South Korea, Japan, Italy, Greece, and

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

Iran's crude exports could fall to little more than 1 million barrels per day (bpd) in November, compared with a 2018 high of around 2.6 million. But that figure could rise from December as importers use their waivers.

"being has no qualms about making U-turns depending on his mood changes. The is desperately trying to evaluate the possible impact of U.S. sanctions on Iranian production and exports," PVM said in a note.

Meanwhile, concerns about demand continue. The trade dispute between the and threatens growth in the world's two biggest economies and currency weakness is pressuring economies in Asia, including and

On the supply side, oil is ample despite the sanctions against as output from the world's top three producers - Russia, the and - is rising.

The three countries combined produced more than 33 million bpd for the first time in October, meaning they alone meet more than a third of the world's almost 100 million bpd of

Amid ample supply, top crude exporter has cut the December price for its Arab Light grade for Asian customers.

The price pressure on oil has scared off financial traders.

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

(Additional reporting By in Singapore; Editing by and Mark Potter)

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

First Published: Tue, November 06 2018. 20:51 IST