Singapore — Crude oil futures were lower in mid-morning trade in Asia Friday as concerns eased over the impact on supply of looming US sanctions on Iran.
At 11:28 am Singapore time (0328 GMT), January ICE Brent crude futures were down 32 cents/b (0.44%) from Thursday’s settle at $72.57/b, while the NYMEX December light sweet crude contract was 32 cents/b (0.50%) lower at $63.37/b.
“Oil fell to the lowest levels in more than six months on reports that the US may not go that hard on sanctions on Iran oil exports as they kick in on November 4,” UOB analysts said in a note Friday.
The US is in the midst of an “internal process to consider significant reduction exemptions for individual countries,” US State Department deputy spokesman Robert Palladino said Thursday.
“[This] eased concerns that Iran exports would be severely impacted after the sanctions are implemented,” ANZ analysts said in a note Friday.
India has indicated it is hoping to continue importing some Iranian crude and South Korea to continue importing some condensate after sanctions go back into force Monday, with both agreeing to reduce those volumes further by May.
Platts Analytics estimates China and India will each import at least 300,000 b/d of Iranian crude in November, compared with April-May volumes averaging 690,000 b/d for India and 684,000 b/d for China.
Rising US output and stocks also impacted prices Friday after the release of latest US Energy Information Administration data.
Developments in ongoing US-China trade tensions also added bearish sentiment.
As of 0328 GMT, the US dollar index was up 0.09% at 96.170.
–Jeslyn Lerh, [email protected]
–Edited by Wendy Wells, [email protected]
Source: S&P Global Platts
