oil prices rebound from new depths
Last Updated : GMT 14:57:32
Arab Today, arab today
Arab Today, arab today

Oil prices rebound from new depths

Arab Today, arab today

Arab Today, arab today Oil prices rebound from new depths

Oil prices have slumped by about three-quarters since mid-2014
London - AFP

World oil prices rebounded Monday from new 12-year depths struck after the West lifted sanctions on Iran, paving the way for higher crude exports from the Islamic Republic.

Brent crude tumbled below $28 a barrel in Asia trading hours to reach a fresh 2003 low point on fears about a worsening global supply glut.

But the market then found support, rebounding above $29 on bargain-hunting and as OPEC said it expects a "rebalancing process" to begin in 2016.

Half a million barrels of Iranian crude are set to be added to already saturated markets after US and European leaders ended a crippling embargo put in place over Tehran's nuclear programme.

The news led to further selling of black gold, whose prices have slumped by about three-quarters since mid-2014 owing to the supply glut, record output levels, weak demand growth and a slowing global economy led by China.

But the Organization of the Petroleum Exporting Countries (OPEC) said Monday that it expects a "rebalancing process" as the sharp fall in oil price causes production from non-cartel competitors such as the United States to fall after seven years of "phenomenal" growth.

If the prediction is accurate, it would make a victory of sorts for OPEC's strategy of keep the oil flowing despite crude sliding from above $100 in 2014 -- to defend its market share.

On Monday, Brent tumbled to as low as $27.67 a barrel -- a level last seen in November 2003.

New York prices also hit a low of more than 12 years at $28.36.

"The drop was due to the Western sanctions on Iran being lifted," said Phillip Futures analyst Daniel Ang.

"This means we will be seeing a bigger oil glut with Iranian crude exports coming back to the market."

Ang added that prices had rebounded on bargain-buying.

Iran on Monday ordered as planned an increase of 500,000 barrels per day in its oil production.

Ric Spooner, chief market analyst at CMC Markets in Sydney, said that while Iranian oil could come in quickly, suppliers still needed to find buyers.

"Iran has quite a large storage of oil at the moment," Spooner told AFP.

"They are in a position to sell that if they choose to do so and increase supply quite quickly... (but) they've got to get the buyers and that's one of the key questions," he said.

Banking group ANZ said Iran is likely to offer discounts to entice buyers, leading to "further downward pressure on prices in the near-term".

Around midday in London, Brent North Sea crude for delivery in March was up 30 cents at $29.24 a barrel compared with Friday's close.

US benchmark West Texas Intermediate for delivery in February climbed 34 cents at $29.76.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

oil prices rebound from new depths oil prices rebound from new depths

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

oil prices rebound from new depths oil prices rebound from new depths

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Prince's vision spurs new Cornwall village

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Presenter Sherine Ramahi proud of her career

GMT 06:46 2017 Sunday ,19 November

Presenter Sherine Ramahi proud of her career
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Hanan Metawe denies apology for “Major Treason”

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 06:13 2017 Friday ,17 November

Pope denounces healthcare inequality

GMT 05:18 2017 Thursday ,16 November

Boeing announces $27bn from flydubai

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday