Oil tumbles on speculations that Iran's supply will resume soon

Image Source: RachenStocker, Shutterstock.com

Highlights

  • Crude oil prices tumble on Thursday.
  • The prices settle at nearly two-week low levels on speculations that Iran's supply will resume.
  • S. crude stocks rose by 4.3 million barrels in the last week.

Crude oil prices tumbled on Thursday to the level last seen during the first week of the month while it settled off at nearly two-week lows as concerns about the US supply growth rose on speculations that Iran’s supply could come online following nuclear talks with global powers. December delivery Brent Crude oil futures last traded at US$83.58 per barrel down 0.38%, whereas December delivery WTI crude oil futures traded 0.23% down at US$82.52 per barrel as of 29 October 2021 at 12:05 PM AEDT.

OPEC | Source: © Gumpapa | Megapixl.com

The Organisation of the Petroleum Exporting Countries (OPEC) group along with its allies decided to adhere to their original plan of boosting the output by 400,000 bpd per month till April 2022.

Iran supply

Iran’s top nuclear negotiator, Ali Bagheri Kani on Wednesday stated that the country is in talks with nearly six world powers to revive the iconic 2015 nuclear deal, expected to resume by November end.

Crude oil | Source: © Batareykin | Megapixl.com

The significant deal could pave the way to lift the sanctions imposed by the former US President Donald Trump in 2018 on the country's oil exports.

Additionally, as per the U.S. Energy Department, U.S. crude stocks rose by 4.3 million barrels in the last week. The huge stock build was witnessed because of a huge jump in crude oil imports while refining remained sluggish.

Bottom Line

Crude oil prices tumbled on Thursday to settle at nearly two-week lows as concerns about the US supply growth rose on speculations that Iran’s supply will resume soon.


 


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