Wednesday , July 28 2021

The oil drops to a low of 7 months, as the ease of global anxiety makes it easier



Oil fell to a low of seven months, worrying that US sanctions over Iran will squeeze supplies globally.

Crude was set in New York on Monday after he stepped up earlier, as US sanctions against OPEC No.3 gave the start. The Trump Administration has granted derogations to China and seven other major buyers so that it can continue to buy crude from Iran. Meanwhile, the expansion of domestic stocks alleviates concerns about global resources.

"The reality of the exemptions is that there will be an Iranian oil left on the market, but it will still be an amount that the market will lose," said John Kilduff, a partner in the hedge fund of New York Again Capital LLC.

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Oil has fallen from one month to four in the past month, as speculation has increased that Washington will grant relief from gasoline price cuts before the US elections, while other producers in the Organization of the Petroleum Exporting Countries have committed to reduce the gaps in the offer. Meanwhile, a trade war between the two major economies of the world has raised concern that fuel demand will suffer even after President Donald Trump has said he wants to reach an agreement with China.

At the Cushing Pipeline Center in Oklahoma, gross stocks were probably 2.1 million barrels last week, according to a Bloomberg-based forecast.

The Texas Midwest Intermediate for December delivery lost 4 cents to close the session at $ 63.10 per barrel at the New York Mercantile Exchange. Futures fell 6.6% last week. The total volume traded on Monday was about 10% lower than the average of 100 days.

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The Brent settlement contracts in January brought 34 cents to set at 73.17 USD at the ICE Futures Europe stock exchange in London. The world reference exchange traded at $ 9.96 for WTI for the same month.

US Secretary of State Mike Pompeo said the derogations would only temporarily allow the purchase of Iranian crude oil. Iran may change its behavior or see the collapse of its economy, he said.

© 2018 Bloomberg L.P.


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