Oil prices fall despite looming Iran sanctions, OPEC led cuts

MLN – Oil prices took a dip downwards on Wednesday after a significant recovery in supplies was seen despite a cut in in supplies by the body of oil suppliers, OPEC. The prices have also risen over the looming US Sanctions in Iran.

Brent crude futures, the international benchmark for oil prices, were at $78.07 per barrel at 0024 GMT, down 36 cents, or 0.5 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $71.02 a barrel, down 28 cents, or 0.4 percent, from their last settlement.

Despite the current fall in prices, both benchmarks have touched their highest peaks yesterday since November, 2014 reaching $79.47 and $71.92 a barrel. Oil prices are expected to pick up in the coming days as cuts in crude oil supplies strengthen. OPEC has been extremely successful in bringing the global oil glut to a standstill with better than expected compliance from all participating countries.

However, the situation is about to change more in the favor of rising prices as the investors eye the looming US sanctions on Iran. US recently decided to withdraw from the Iranian Nuclear deal signed by the President Barack Obama during his second tenure, before announcing sanctions on Iranian Central Bank President. Analysts anticipate US sanctions on Iran to send the oil prices further upwards.

Some industry experts estimate oil could easily cross $100 a barrel mark in the coming six months.