After visiting a four-year high of almost $87 a barrel, the Asian benchmark Brent oil has fallen sharply, retreating about 28% to $61.71 a barrel this week. The outlook of oil has turned negative amid rising production and concerns over global economic growth. Mirroring its overseas trend, Indian futures prices too shed by more than 30% since the first week of October.
Worries of supply crunch on the prospect of tough sanctions on Iran and healthy demand from top oil consumers kept oil prices at multi-year highs earlier. Iran is the OPEC’s third largest producer contributing about three percent of the global oil output. Iran’s exports has fallen about 60-80% percent since the U.S withdrawn the 2015 nuclear deal and re-imposed sanctions. Read More