Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Oil sinks 5% as markets brace for more supply from Iran

CommoditiesFeb 02, 2016 08:49AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Oil extends losses as markets brace for more supply from Iran - Oil prices sold off for the second straight session on Tuesday, after Iran said it planned to increase crude exports to 2.3 million barrels per day in its next fiscal year, starting March 21.

The comments triggered fresh losses in the oil market, as traders worried that Iranian supplies will add to a global surplus.

On the ICE Futures Exchange in London, Brent oil for April delivery slid to an intraday low of $32.50 a barrel, the weakest since January 27, before trading at $32.73 a barrel by 13:50GMT, or 8:50AM ET, down $1.51, or 4.4%.

A day earlier, London-traded Brent futures plunged $1.75, or 4.86%, amid doubts over the likelihood of a deal between Russia and OPEC producers to cut output happening anytime soon.

Brent prices are still up nearly 16%, since falling to a 12-year low of $27.10 on January 20, as speculation OPEC and non-OPEC producers may be edging closer to a deal to cut production in an effort to tackle one of the biggest supply gluts in decades fueled a short-covering rally.

Global crude production is outpacing demand following a boom in U.S. shale oil and after a decision by the Organization of the Petroleum Exporting Countries last year not to cut production in order to defend market share. Oversupply issues will be exacerbated further as Iranian exports return to the global oil market.

Elsewhere, crude oil for delivery in March on the New York Mercantile Exchange sank $1.21, or 3.84%, to $30.41 a barrel during morning hours in New York after hitting a session low of $30.31, a level not seen since January 26.

On Monday, New York-traded oil futures tumbled $2.00, or 5.95%. The U.S. benchmark is still up 13% since falling below $27 for the first time since September 2003 on January 20.

Market players looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.

The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 4.8 million barrels in the week ended January 29.

Meanwhile, Brent's premium to the West Texas Intermediate crude contract stood at $2.32, compared to a gap of $2.62 by close of trade on Monday.

Oil sinks 5% as markets brace for more supply from Iran

Related Articles

Oil Up as Omicron Fears Continue to Ease
Oil Up as Omicron Fears Continue to Ease By - Dec 08, 2021

By Gina Lee – Oil was up Thursday morning in Asia, extending gains as fears about the omicron COIVD-19 variant’s impact on economic recovery and fuel demand continue...

Oil stays on the rebound as Omicron fears ease
Oil stays on the rebound as Omicron fears ease By Reuters - Dec 08, 2021 1

By Sonali Paul MELBOURNE (Reuters) - Oil prices extended gains on Thursday on confidence that the Omicron coronavirus variant would not dent global growth, even as some...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email