CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Oil prices fall as US grants Iran sanction waivers

Oil prices fell on Monday as the start to US sanctions on Iran’s fuel exports begins, with some countries given waivers to import.

Zena Chamas

Publication date : 2018-11-05T05:15:00+0000

US sanctions against Iranian Oil see prices fall

US sanctions against Iran’s fuel exports will begin with a softer blow this week, as countries that have been granted waivers will still be allowed to import Iranian crude oil.

Washington has granted temporary waivers to key buyers, after announcing on Friday it will temporarily allow the top eight importers to buy Iranian oil. The US has still not named which eight coutnries would be temporarily exempt.

Previously, China, India and South Korea have been the top importers of Iran’s oil, along with Turkey, Italy and occasionally Taiwan. Analyst predict India, China and South Korea are likely to be among the eight granted the waivers.

Oil markets have been preparing for the sanctions for months. India's economy has already been affected by the sanctions. The Indian rupee was at 72.7650 to the dollar on Monday, down from its previous close of 72.44.

Trade tensions easing between China and the US have seen the rupee gain the most in years, analysts predict the rupee is unlikely to fall sharply as it is expected to take comfort from soft crude prices.

Oil prices under pressure

The Abu Dhabi National Oil Company (ADNOC) said on Sunday it has plans to increase its oil production capacity to 4 million bpd by the end of 2020 and 5 million bpd by 2030, compared with current output of just over 3 million bpd

Brent crude futures were at $72.40 per barrel on Monday, down 43 cents, or 0.6% from their last close.

US West Texas Intermediate (WTI) crude futures were down 46 cents, or 0.7%, at $62.68 a barrel.

Brent has lost more than 16 % in value since early October, while WTI has declined by more than 18 % since then.

Analysts say Iranian exports have shown a decline of more than 1 million barrels per day (bpd) as of October from May.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Find articles by writer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Professional Clients can lose more than they deposit.

The value of shares and ETFs bought through an IG stock trading account can fall as well as rise, which could mean getting back less than you originally put in. Please ensure you fully understand the risks and take care to manage your exposure.

IG does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. IG is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.

IG is a trading name of IG Limited a company registered at 2702 & 2703 Level 27, Tower 2, Al Fattan Currency House, DIFC, Dubai, United Arab Emirates. IG is authorised and regulated by the Dubai Financial Services Authority (DFSA) under reference No. F001780.

The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UAE and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.