The slide has prompted fears that the market may be oversupplied with oil and the lifting of sanctions from Iran will only add to the current glut.
The global oil market is already in surplus by about 3 million barrels a day, with Saudi Arabia and Iraq responsible for OPEC’s oversupply in the past six months, Iran’s state-run Islamic Republic News Agency reported Sunday, citing the nation’s OPEC representative Mehdi Asali.
The Organization of Petroleum Exporting Countries may boost output to 33 million barrels a day after Iran’s international export restrictions are removed, according to the nation’s OPEC representative.
Meanwhile, the number of rigs seeking oil in the US rose by two to 672, the most since May, Baker Hughes Inc. data showed.
“There is no change to the fundamentals,” Ric Spooner, a chief analyst at CMC Markets in Sydney, said by phone.
“The market is continuing to drift lower and it’s doing so without pause. Inventories in the US remain large for this time of the year, the drawdown over the summer driving season has been relatively disappointing.”
