Oil near six-month low as fears of shortage subside
Oil traded near a six-month low as the prospects of a tight global market at the end of year further receded after the US softened the restart of sanctions against Iran. Crude oil in New York slipped 0.4%, falling for a sixth day. Sanctions against Iran snapped back on Monday, though eight countries were allowed to continue buying some crude oil from the country, according to US secretary of state Michael Pompeo. Hedge funds reduced bullish bets for an eighth week as extra supplies from the Organization of the Petroleum Exporting Countries (Opec) and the US assuaged concerns of a potential shortfall.
Oil slid from a four-year high last month as speculation grew that Washington would grant waivers on Iranian sanctions to lower pump prices ahead of the US midterm elections, while other producers in Opec pledged to offset any supply gaps. West Texas Intermediate crude for December delivery fell as much as 1% to $62.52 a barrel on the New York Mercantile Exchange, the lowest since 9 April. BLOOMBERG