Oil falls as sanction waivers raise concern about well-supplied market
JPMorgan says the sell-off is due to ‘excessive crude’ from rising production while Iranian supply remains in the market
Singapore — Oil prices dipped on Wednesday as rising output and US sanction waivers that allow Iran’s biggest buyers to keep taking its crude reinforced the outlook for a well-supplied market. Front-month Brent crude oil futures were at $72.04 a barrel at 3.37am GMT, down 9c, or 0.1%, from their last close. US West Texas Intermediate (WTI) crude was at $61.92, down 29c, or 0.5%, from its last settlement. Brent and WTI have slumped by 17.4% and 19.7% from recent peaks touched in early October. US bank JPMorgan said the “sell-off in oil was due to excessive crude” from rising production “whilst Iranian supply was still in the market”. Washington re-imposed sanctions against Iran’s oil exports on Monday but granted waivers to its biggest customers, allowing them limited imports for the next 180 days. Refinitiv Eikon data showed Iranian crude exports have fallen to 1-million barrels a day so far in November, down from about 3-million barrels a day in mid-2018. But Iran supply is expecte...
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