Funds dump oil as Tehran deal threatens glut
Iran, holder of the fourth-biggest crude reserves, may be able to increase exports as soon as December if it complies with the terms of its nuclear accord with world powers. That would add to record output from Saudi Arabia and Iraq and come at a time when the Opec countries is pumping the most in almost three years.
“Iraqi production’s rising, Saudi Arabia increased production, total Opec production is trending higher,” said Tim Evans, an energy analyst at Citi Futures Perspective in New York. The US benchmark grade slipped to $50.89 on July 17, the lowest closing price since April 9. The US, China, Russia, the UK, France, and Germany reached the deal with Iran in Vienna on July 14. Full implementation depends on Iran meeting obligations to curb its nuclear program. Iran has until December 15 to answer 12-year-old questions about its weapons capabilities.
