In Business, oil prizes today hit their lowest since two thousand and three as the market braces itself for a jump in Iranian exports after the lifting of sanctions on the country over the weekend.
The U.N Nuclear watchdog, the IAEA said on Saturday that Iran had met its commitments to curtail its nuclear program and the United States immediately revoked sanctions that had slashed Iran’s oil exports by around two million barrels per day since twenty eleven.
And just yesterday, Iran a member of the cartel, OPEC said it was ready to increase its exports by five hundred thousand barrels per day.
Analysts say a chronic global surplus of a million barrels or more of crude daily has pulled down oil prices by over seventy five percent since mid twenty fourteen and by over a quarter since the start of twenty sixteen.
Brent crude is now selling this morning at twenty seven point six dollars per barrel, its lowest since two thousand and three.
However, some traders described the plunge in prices as a knee-jerk reaction, saying Iran’s ambitions to export five hundred thousand barrels per day were not very realistic.