Brent crude oil prices reached a peak above $85 per barrel and WTI above $76 per barrel earlier in October, amid concerns about reductions in the global supply. The contract has previously touched the $75.88 number, which is lowest since 7 September.
USA light crude CLc1 was unchanged at $66.82 after touching an intraday low of $65.99, down 83 cents. "International demand and trade concerns are what the market is grabbing onto here".
Iran's Oil Minister Bijan Namdar Zanganeh played down President Trump's attempts to "zero down Iran's crude exports", warning that the United States sanctions will only inflame the market.
All the while, global economic growth has been strong for several quarters and oil demand continues to grow.
If U.S. production fails to grow at recent rates, it is far from clear that the world's two other oil superpowers, Russian Federation and Saudi Arabia, can pick up the slack. Hence, Saudi Arabia is going to respond against this cause by punishing the agents.
Saudi Energy Minister Khalid al-Falih said this week that, despite expected supply disruptions from USA sanctions, Saudi Arabia would step up to "meet any demand that materialises to ensure customers are satisfied".
After many months of concern about shortage of supply ahead of USA sanctions on Iran, due to begin on 4 November, the oil market is beginning to be concerned about possible oversupply and inventories that are rising in many parts of the world. On Nov. 4, the second period will end and trigger the re-imposition of full sanctions on Iran, including a number of measures that target Iran's energy sector. "Based on market fundamentals, there is absolutely no reason oil prices should be at this level", said Ali Moshiri, chairman of Amos Global Energy LLC, a Houston-based oil producer and a longtime Chevron Corp. executive. Washington is still insisting on full compliance to ensure no Iranian oil exports find a market.
Many buyers, including Iran's biggest customer, China, appear to be falling in line, forcing Tehran to store unsold oil on tankers in the hope it can sell the crude once sanctions are lifted.
US crude production is soaring, boosted by technological advances.
Referring to the significance of oil market stability he said, "Stability in world oil market is in favor of U.S. Any increase in oil market directly affect energy security in the U.S".
In the months following the full implementation of sanctions in November, the total volumes of crude oil and condensate coming off the market will become more apparent.