Oil prices fall from four-year highs
Oil prices fell on Tuesday in the European market, due to correction and profit taking after US crude hit a four-year high and recorded earlier in the Asian market. Brent crude also fell from its highest level in four years
The recent rise in prices comes as a result of the decline in Iranian oil supplies, which recorded the lowest levels in a year and a half, as the United States is preparing to impose new economic sanctions on Iran beginning in November, which would lead to a retreat Iranian oil supplies in the coming period.
US crude fell around $ 75.30 a barrel from $ 75.39 a barrel by 9:20 GMT and hit a high of $ 75.89 since Nov. 25, 2014, while a low of $ 75.22.
Brent crude fell to 84.60 US dollars a barrel from the opening level of 84.96 dollars and achieved the highest level of 85.31 dollars, while the lowest level 84.52 dollars.
US crude ended yesterday's trading up 2.6%, marking its third straight daily gain, and Brent crude was up 2.5% in its fourth straight gain, recording a four-year high of $ 85.44 a barrel. Yesterday's rally was followed by lower drilling and drilling platforms in the US as well as continued market concentration on Iranian oil supplies.
Over the course of last week, global oil prices rose by 4%, marking the third weekly gain respectively, as the market continued to focus on the prospects of Iranian oil supplies after the US sanctions in November.
In September, oil prices rose by 5.2%, marking their second straight monthly gain, as concern over oversupply in the market subsided after Iran's oil supplies actually declined in recent times. "To the demands of US President Donald Trump to increase production and lower prices.
On the other hand, the Bank of America Merrill Lynch said in a note to customers that Iranian crude oil exports have decreased by 580 thousand barrels per day in the past three months.
Several important data for Bloomberg showed that crude oil shipments from Iran, OPEC's third-largest oil producer, dropped to 1.72 million barrels per day in September, a drop of 260,000 barrels per day from what was shipped in August.
The total of exported Iranian crude last month was the lowest of Iranian exports since February 2016, especially as the major Asian countries continued to respond to US demands to stop the import and reduction of Iranian oil, led by South Korea and Japan, and India has begun to reduce its purchases of Iranian crude.
With the US sanctions coming into force starting next November, Iran's oil supplies will be further reduced, leading to supply shortfalls in the market. The United States is therefore trying to compensate for the potential shortfall, whether by domestic production or by pressing OPEC and Russia to increase Production and price reduction.