Oil prices are reported to have resumed their move down to new major lows. Masterforex-V Academy reports that today’s ICE Futures on Brent oil for February delivery lost another 1,67% to drop down to $28.28 per barrel earlier on he trading day.
The same holds true for WTI futures traded on NYMEX. The WTI futures for February delivery dived 2,74% deeper to see $27.68 per barrel. As you can see, both WTI and Brent are trading below $30/b while their prices are nearly identical.
It should also be noted that the IEA admitted the likelihood of another move down in oil prices. Apparently, the major reason is Iran, which is going to come back to the international market after several years of Western sanctions restricting its oil exports. Indeed, the sanctions imposed by the USA and its Western allies regarding the Iranian nuclear program no longer exist, which gives Iran an opportunity to return to the global market of crude oil as a major player.
Washington and Brussels made such a crucial decision instantly after the International Atomic Energy Agency (IAEA) reported that Iran complied with all the necessary obligations within the scope of its nuclear program. The cancelation of the sanctions means no limitations to the cooperation with Iranian oil companies. However, Washington still has a black list of 200 individual and companies related to Iran. At the same time, American companies are still banned from any direct cooperation with the Iranian government. Still, the very fact that the West canceled the sanctions imposed on Iran several years ago testifies to the fact that the Western-Iranian relations have now entered a new stage.
