Oil pummels more than 2 per cent on possible return of Iranian crude



by   |  VIEW 662

Oil pummels more than 2 per cent on possible return of Iranian crude

On Thursday, both Brent and US WTI (West Texas Intermediate) crude oil futures’ prices took a tattering header of more than 2 per cent, extending their latest leg of losing run into a third straight day in a row, as diplomats said that there had been a substantial scale of progress towards a deal aimed at lifting US sanctions on Iran, stoking frets of a supply glut in a near term.

Both contracts lost more than 2 per cent yesterday, too, over concerns of a second wave of pandemic outbreak in Asia alongside a stronger US Dollar. Nonetheless, in the day’s steep downturn in crude oil futures’ prices were almost entirely prodded by a remark from the Iranian President Hassan Rouhani, while speaking in a televised speech, Rouhani said earlier on the day that the US sanctions on Iranian oil, shipping, petrochemicals, insurances alongside the Central Bank, had been included in the talks.

However, European Diplomats were quoted saying that a nuclear deal with Tehran could not be guaranteed amid a cascade of conflict of interests.

Crude oil falters further on probable return of Iranian crude oil

Citing statistics, in the day’s commodity market wind down, the UK crude futures’ prices faltered as much as 2.3 per cent to settle down at $65.11 a barrel, while the US WTI crude futures’ prices plummeted nearly 2.1 per cent to $62.05 per barrel.

Meanwhile, as Indian and European refiners were reassessing their crude purchases to create space for Iranian oil in the second half of the year over anticipations that a swathe of US sanctions on Tehran might be lifted, referring to investors’ worries of a near term supply glut following remarks from the Iranian President Hassan Rouhani, a senior analyst at Price Futures Group in Chicago, Phil Flynn said, “That really weighed on sentiment and that pushed us down a little bit," said Phil Flynn, senior analyst at Price Futures Group in Chicago.

There’s room in the global market for more Iranian oil but in the short term that’s what is weighing on us today.