Photo: Ali Mohammadi, Bloomberg
Oil has fallen to a seven-month low as concerns have said that US sanctions against Iran will push global supplies.
Raw material settled in New York on Monday after it climbed earlier when US sanctions against OPEC producer No. 3 officially kicked off. The Trump administration has given up giving up China and seven other major buyers to continue buying Iranian raw materials. Meanwhile, expanding domestic supplies have curbed concerns about tightening global supply.
"The reality of the tax exemption is that there will be some Iranian oil on the market, but it will still be the amount the market will miss," said John Kilduff, a partner in New York's hedge fund called Again Capital LLC.
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Oil has fallen from a four-year high last month, as speculation has grown so that Washington will grant exemptions from the fall in gas prices before the US mid-term elections, while other oil-exporting producer organizations have pledged to offset any shortfalls in supply. Meanwhile, the trade war between the world's two largest economies has raised concern that fuel demand will suffer, even though President Donald Trump said he wants to reach an agreement with China.
In the main oil pipeline in Cushing, Oklahoma, crude stocks last week increased by 2.1 million barrels, according to a forecast compiled by Bloomberg.
Western Texas's month-on-month gross delivery for December lost 4 cents to end a session at $ 63.10 a barrel on the New York Mercantile Exchange. Futures moved 6.6 percent last week. The total volume traded on Monday was roughly 10 percent lower than the average of 100 days.
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Brent futures for this year's settlement have added 34 cents on a settlement of $ 73.17 on the ICE Futures Europe stock exchange in London. Global benchmark raw material was traded for $ 9.96 for WTI for the same month.
US Secretary of State Mike Pompeo said the exception would allow only temporary purchases of Iranian raw material. Iran may either change its behavior or see its collapse of the economy, he said.
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