Crude oil futures drop on surging Iran sales

Crude oil futures drop on surging Iran sales

04/10/2016 12:42

Crude oil futures were trading lower during the noon trade in the domestic market on Tuesday as investors and speculators trimmed their positions in the energy commodity on the back of rise in Iranian exports that adds to a global supply overhang.

However, oil prices got some support from the OPEC’s preliminary agreement to cut production.

The oil prices were dented by the latest rise in Iranian crude and condensate sales, which likely reached about 2.8 million barrels per day (bpd) in September, almost matching a 2011 peak in shipments before sanctions were imposed on the OPEC producer. At the MCX, crude oil futures for October 2016 contract is trading at Rs 3,228 per barrel, down by 0.55 per cent, after opening at Rs 3,239, against a previous close of Rs 3,246. It touched the intra-day low of Rs 3,227 (at 12:31 hours).

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