Oil prices continue to fall amid US sanctions on Iranian crude

Oil prices fall more than 1% after US officials consider waiving sanctions on nations that show effort to reduce Iranian oil imports.

Oil Crude

Oil prices saw declines of more than 1% on Monday as US officials report potential sanction waivers to the nations which show efforts to reduce their imports of Iranian oil.

International Brent oil futures fell upon the news, at $83.53 per barrel, down 63cents from their last close.

US West Texas Intermediate crude futures (WTI) fell 39cents at $73.95 a barrel.

A US government official said on Friday, Washington was considering granting exemptions to countries that show progress to reduce their Iranian oil imports.

The Us oil drilling rig count has fallen consecutively for three weeks, after drillers cut two oil rigs in early October, bringing the total down to 861, according to energy services firm Baker Hughes.

Analysts say this might not be the end of the fall in oil prices, with predicttions Brent oil may slide further.

This comes after President Trump announced the US will sanction Iran’s crude oil exports as early as November 4th, putting pressure on governments and companies to cut their Iranian oil imports to zero.

India’s government is already planning to ask state oil firms to lock in their crude futures purchase price, anticipating spikes.

Last week, industry sources said India will continue to buy Iranian oil despite the sanctions, according to a Reuters report.

Industry sources claim India will buy 9 million barrels of Iranian oil in November.

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

All trading involves risk and losses can exceed deposits. Trading CFDs may not be suitable for everyone so please ensure that you fully understand the risks involved. All trading involves risk and losses can exceed deposits.