The prospects of a possible U.S. deal with Iran over its nuclear program have added to traders’ expectations of a flow of new Iranian crude into the market.
The Wall Street Journal reported that the benchmark U.S. oil price fell to its lowest point in six years mid-day Monday, based on prospects of a glut in supply.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.
In earlier deals, US benchmark West Texas Intermediate (WTI) for April delivery sank as low as $43.57 —the lowest since March 12, 2009. The contract later recovered just a bit, to stand at $44.40, down 44 cents from Friday’s closing level.
Crude prices lost about 60% of their value to $40 per barrel between June and late January due to abundant supply, a weak global economy and a rising dollar.
According to the WSJ, OPEC said that its February crude-oil output was down to 30.02 million barrels a day, blaming disruptions caused by the ongoing instability in Libya.
Meanwhile, a senior U.S. official told AFP it was still unclear if a deal between Iran and six world powers could be reached in outline form by the March 31 deadline, comparing the process to a “roller coaster.”
After a five-hour meeting between Secretary of State John Kerry and his Iranian counterpart, the official said, “Iran still needs to make some very tough and necessary choices.”
The official added: “We still hope to be able to get there but quite frankly we still don’t know if we will be able to.”
