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Monday, January 18, 2016

Oil prices slumped to a 2003 low below $28 per barrel on Monday January 18,2016

Oil prices slumped to a 2003 low below $28 per barrel on Monday  January 18,2016 as the market anticipated a rise in Iranian exports after the lifting of sanctions against Iran

Responding to Tehran`s compliance with a nuclear deal, the United States and major powers revoked international sanctions that had cut Iran`s oil exports by about 2 million barrels per day (bpd) since their pre-sanctions 2011 peak to little more than 1 million bpd.

Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), issued an order on Monday to increase production by 500,000 bpd, the country`s deputy oil minister said.

Worries about Iran`s return to an already oversupplied oil market drove down Brent crude to $27.67 a barrel early on Monday, its lowest since 2003. The benchmark was down 29 cents at $28.64 by 1850 GMT

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