Singapore (awp / afp) – Oil prices were trending lower on Monday in Asia as investors are less concerned about the upward impact of sanctions against the Iranian oil sector that the United States is restoring Monday.
Around 03:15 GMT, a barrel of light sweet crude (WTI), the US crude, for delivery in December, yielded 47 cents to 62.67 dollars in electronic exchanges in Asia.
Brent crude, a European benchmark for delivery in January, was down 43 cents to 72.40 dollars.
US sanctions are the realization of the withdrawal of the 2015 Iranian nuclear deal announced by Donald Trump in May.
These sanctions are tantamount to blackmail against third countries that are currently trading with Iran: Asian or European companies will be banned from the US market if they continue to import Iranian oil, or to trade with targeted Iranian banks by Washington. Many should choose the United States, or have already done so.
Investors feared that these sanctions would result in a withdrawal of a million barrels of markets, and therefore by a surge in crude oil.
But eight countries will however benefit from an exemption for oil, including Turkey, and possibly China and India. The list will be announced Monday.
"Temporary exemptions will limit the impact of sanctions," said Stephen Innes, an analyst at OANDA.
And even if sanctions are applied by all countries, "investors are facing increased production from the United States, Russia and even OPEC," Innes added.
On Friday, crude prices ended their fourth consecutive week of decline because of a drop in concern over Iran's sanctions, "said Oriano Lizza of CMC Markets in Singapore.
mba / JAC / cn