Oil prices fell on the European market on Tuesday by correction and profit taking, to drop US crude from the highest level in four years recorded earlier in the Asian market, and Brent crude registered earlier in yesterday’s trading, the strong rises in oil prices under the TEHRAN (Reuters) – Iran’s oil exports will fall to a one-and-a-half year low as the United States prepares to impose economic sanctions on Tehran early next month, further eroding Iranian supplies to the world market.
By 0920 GMT, US crude oil dropped to $ 75.30 a barrel from the opening level of $ 75.39, and recorded a high of $ 75.89 since November 25, 2014 and a low of $ 75.22.
Brent crude fell to $ 84.60 per barrel from the opening level of $ 84.96 and recorded a high of $ 85.31 and a low of $ 84.52.
US crude was up 2.6% in the third daily gain, respectively, and Brent crude rose 2.5%, its fourth consecutive daily gain, and recorded a four-year high of $ 85.44 a barrel, Market focus on Iranian supplies.
Last week, world oil prices rose by an average of 4 percent, their third consecutive weekly gain, as the market continued to focus on Iran’s supply prospects after US sanctions came into effect in November.
Oil prices rose an average of 5.2% in September, the second monthly gain in a row, as fears of oversupply in the market eased after Iran’s supply already declined. OPEC ignored US President Donald Trump’s demand for higher production and lower prices.
According to Bloomberg data, crude oil shipments from Iran, OPEC’s third-largest oil producer, fell to 1.72 million barrels per day last September, down 260,000 barrels per day from what was shipped in August.
The total of exported Iranian crude last month is the lowest Iranian exports since February 2016, especially as most major countries continue to respond to US pressure to reduce and stop buying oil from Iran.
With US sanctions coming into force early next month, Iran’s supplies will be further reduced, which could cause a supply shortfall in the market, so the United States is trying to compensate for the potential shortages, both domestic production and pressure on OPEC and Russia to boost output.