Crude oil prices slipped lower on Monday as a UN Security Council vote highlighted the prospect of Iranian oil returning to the global market.
West Texas Intermediate for delivery in August, the US benchmark, fell for the fourth straight session, dropping 74 cents to $50.15 a barrel on the New York Mercantile Exchange.
London, global benchmark Brent North Sea crude for September delivery closed at $56.65 a barrel, down 45 cents from Friday’s settlement.
For the WTI contract, Monday’s closing level was the lowest since March 17, when it settled at $43.46.
Citi Futures analyst Tim Evans said that oil swept up in a wider decline in commodity prices, pointing out gold dropped to new five-year lows.
“We continue to view the current physical surplus as sufficient to drive price lower, but more Iranian production will certainly add to the overhang and push a rebalancing of market further down the road,” Evans said.
Published in The Express Tribune, July 22nd, 2015.
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