Oil drops 1% while US allows Iran to waive sanctions

Oil prices fell about 1% on Friday, resulting in a weekly loss of more than 6%, investors worrying about oversupply when the United States announced that it "s likely that oil prices will fall. they would temporarily save eight jurisdictions from the sanctions imposed by Iran.

US Secretary of State Mike Pompeo announced the decision in a conference call. These exemptions could allow major buyers to continue importing Iranian oil after economic sanctions come into effect on Monday.

Futures contracts on Brent fell 23 cents to $ 72.66 a barrel, a 0.3% loss, at 1:08 pm. IS. US crude fell 65 cents to 63.04 dollars a barrel, a loss of 1%.

Both contracts fell by more than 15 percent from the peaks of nearly four years in early October, fearing that impending sanctions imposed by Iran will drain supply to global markets.

Pompeo did not name the jurisdictions, but said that the European Union as a whole, which has 28 members, would not receive them.

India, Iraq and South Korea figured on the list of waivers, said a source close to the case that requested anonymity. Under US law, such exceptions can only be granted for 180 days.

Turkish Energy Minister Fatih Donmez has announced to Turkey that she will receive a waiver of US sanctions against Iranian oil sales.

Iran said on Friday that it was not worried about the reimposition of sanctions.

"It seems that all the worries about tightening stocks following the loss of Iranian barrels on the market have faded," said Gene McGillian, director of market research at Tradition Energy in Stamford, Connecticut.

"In addition, concerns about reducing global demand have also helped (…) the market continues to seek a floor."

Prices have been under pressure as global oil production has increased significantly in the last two months. Data from the Russian Ministry of Energy showed Friday that the country pumped 11.41 million barrels of oil a day (bpd) in October, its highest level in 30 years.

The United States estimates that global oil availability will exceed demand next year, which will make it easier for countries to zero Iranian oil imports, a senior US official said on Friday.

The Organization of the Petroleum Exporting Countries boosted oil production to 33.31 million bpd in October, up 390,000 bpd and at the highest level of OPEC since 2016.

The United States is challenging Russia for the title of leading producer, with US crude production exceeding 11 million bpd.

The number of oil rigs in the United States declined this week for the first time in four weeks. Drillers reduced a rig to November 2, bringing the total count to 874, said Baker Hughes, an energy services company of General Electric Co. reported Friday.