Oil prices decreased due to Iran sanction exemptions

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Oil prices decreased in the international market as the US permitted Iran’s largest oil customers to keep buying from Iran.

Global oil prices decreased as the United States exempted some countries from Iran sanction. However, there are concerns that the economic slowdown may restricted the growth of fuel demand.

The International Brent crude oil futures have seen decline of 0.4% or 28 cents and closed at $72.89 a barrel. The US West Texas Intermediate (WTI) crude futures were fallen by 0.2% or 15 cents.

Examiners said financial slowdown expectations in coming months were weighing on the demand of fuel, while concerns facilitated on the supply-side after Washington conceded eight shippers of Iranian oil sanctions waivers that will enable them to proceed with buys.

The United States gave 6 months exemption to eight oil importers. However, China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey are among them. These are Iran’s greatest purchasers, which means Iran will be permitted to in any case trade some oil for the time being.

On the supply-side, oil is in plentiful accessibility in spite of the authorizations against Iran as yield from the world’s main three oil producers Russia the United States and Saudi Arabia, is rising.

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