Oil plunged on Tuesday, sending for the seventh consecutive session US crude oil prices – the biggest loss in about 20 months.
The losses came a day after Trump's release was granted to allow eight nations to continue buying Iranian crude despite US financial sanctions against the Islamic Republic.
News reports said President Donald Trump told reporters on Monday he wanted to "go a little slower" when it comes to sanctions for Iranian oil because he does not walk to raise oil prices. This also helped ease worries about tighter global procurement.
Petroleum Market Oil "has slowed down and has not stopped, as the US grants exemptions to eight jurisdictions with some obscurity to continue importing oil from Iran," said Ashray Ohri, an ICICI Bank analyst.
At the same time, however, OPEC's Joint Monitoring Committee (OPEC) "is growing with caution from demand at a time when the three largest crude oil producers are increasing their production to record high levels," said Ohri. JMMC officials monitor the implementation of the raw production agreement that began on 1 January 2017 between members and non-members.
West Texas Intermediate crude for December
declined 89 cents, or 1.4 percent, to settle at $ 62.21 a barrel on the New York Mercantile Exchange. Prices, which were the seventh straight decline – the highest since March 2017 – marked their lowest deal since early April this year, according to data compiled by Dow Jones Market Data.
January crude Brent
the world benchmark, fell $ 1.04, or 1.4%, to $ 72.13 a barrel on ICE Futures Europe – the lowest settlement since August 17.
Both contracts are generally negotiated in red after a sharp fraud in October that prompted both global and US benchmarks in correction areas.
The renewed sanctions for Iran came into force on Monday, but Trump administration announced last week a temporary release in eight countries, which he identified as some of Iran's largest oil purchasers: China, India, Italy, Greece, Japan, the South Korea, Taiwan and Turkey.
"These countries are taking the lion's share of Iran's oil exports," analysts wrote to Commerzbank. "This is bad news for oil prices, as it means the oil market's supply situation is going to be further facilitated."
And: The angry Iranian president promises to "break" the new US sanctions
Dont miss: Because oil prices are falling, despite US sanctions on Iran's energy sector
Amalfi in May drew the United States from an international agreement in 2015 to curb Iran's nuclear program, ultimately leading to the resumption of sanctions. However, well-teleported traffic has prompted Iranian crude purchasers to reduce their purchases under sanctions, contributing to a reduction in global supply and a rise in Brent oil prices at four-year highs close to $ 85 a barrel at the beginning of last month.
This was before the nearly 15% retreat followed, as major oil producers, particularly Saudi Arabia, Russia and the US, saw a significant increase in production.
In a monthly report released on Tuesday, the Energy Information Service raised its forecast for crude oil production in the US. Expects crude oil production in 2019 to be 12.06 million barrels per day, up 2.6% from previous projections.
Among other things, the American Petroleum Institute, an industrial group, publishes weekly data Tuesday for US oil reserves, followed by official EIA data on Wednesday.
Analysts surveyed by S & P Global Platts expect the EIA to announce an increase of 1.9 million barrels in crude oil reserves for the week ending November 2. The EIA has already reported increases in each of the last six weeks. The survey also predicts a reduction in the supply of 2.1 million barrels for gasoline and 2.03 million barrels for distillates, which include heating oil.
On Nymex, December gasoline
rose 0.1 percent to $ 1,694 a gallon, and December heating oil
fell 0.4 percent to $ 2,188 per gallon.
Meanwhile, gas contracts have fallen behind a high period of months after dropping nearly 9% on Monday, rising from the expectation that cold weather will lead to a significant rise in demand.
settled at $ 3,555 per million British thermal units, down 0.3%. They are set up on Monday at $ 3,567 – the highest termination for a contract ahead of late January.
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