The price of Brent crude fell by slightly over 1% on Monday to about $83 per barrel. Likewise, the price of US crude all fell by about 0.7% to about $73 per barrel. There have been several reasons why the crude oil prices have fallen when only a week before they were soaring and experts had speculated that they could cost over $90 per barrel.
The primary reason why the crude oil prices have fallen is because the United States has decided to exempt certain nations that have abided by its decision to not import oil from Iran following the US' imposition of sanctions on the Middle-Eastern nation.
The sanctions will come into effect from 4th November 2018. Meanwhile, it was also reported that Saudi Arabia was going to ensure the oil output didn't face any shortages after the enforcement of the Iran sanctioning by supplying a similar amount of output from its reserves.
In this context, it ought to be pointed out that India had announced that it wouldn't be stopping its oil import from Iran and would be importing around nine barrels of Iranian crude in November. This is the second instance when India decided to step away from the looming nature of the American sanctions.
Back last week, it signed a deal with Russia to procure S-400 missiles even risking sanctions from the United States. Also, the current stand-off between China and USA pertaining to trade has also contributed to the slackening of the crude on the day.