Crude oil futures dropped to the six month low on 27th November Wednesday pricked by high supplies taking the energy commodity below $92 a barrel.
NYMEX light sweet crude oil futures for December delivery tumbled to as low as $ 91.77 per barrel after the U.S. government showed a 10th weekly rise in crude supplies. link
On the week the oil futures are down 1.5% per barrel at $ 92.72.
'In the next six months, Iran’s crude oil sales cannot increase.' link
It's been a week now since the nuclear deal signed with Iran. The agreement will not allow any more Iranian oil into the market, nor let western energy investors into the country. However, it does freeze US plans for deeper cuts to Iranian crude exports.
The Iranian agreement with the U.S., along with other permanent members of the U.N. Security Council as well as Germany, runs for six months and includes a halt to Iranian efforts to improve its uranium-enrichment capacity. However, Iran to continues low-grade uranium enrichment link
It allows increased monitoring of its nuclear program. The deal also will suspend U.S. pressure for progressively deeper cuts by importers of Iranian crude oil, including countries such as China.
Analysts see limited oil price impact from Iran deal link
Oil analyst Dan Dicker wrote an excellent report on why he sees oil heading higher Read
Eugen Weinberg, head of commodity research at Commerzbank, says Brent prices are "elevated and ahead of fundamentals" and that the spread with WTI currently has "a life of its own....but spread is likely to narrow"