Oil extended its slide to six-month lows as the US softened its crackdown on Iranian exports and American supplies surged, easing concerns of an impending shortage.
Futures slumped 6.3 per cent this week, the biggest drop since early February. The US has agreed to let eight countries — including Japan, India and South Korea — keep buying Iranian oil after sanctions kick in this weekend to prevent a spike in prices, a senior administration official said.
“Reduced demand and the idea that we’re going to have ample supply seems to have eaten up a lot of the market’s strength this year,” said Gene McGillian, senior analyst and broker at Tradition Energy. Read more