Global oil prices extended declines Monday as Iran vowed to continue to sell crude on international markets despite fresh sanctions from the White House and what could be a major shift in demand triggered by the U.S.-China trade war and slowing economic growth. U.S. Secretary of State Mike Pompeo called the sanctions "the toughest sanctions ever put in place on the Islamic Republic of Iran", but his department noted Friday that waivers had been issued to at least eight importing nations -- which will be revealed later today -- as the first day of ban of the purchase of Iranian crude kicked-in at midnight last night. The Monday market moves take the quarter-to-date decline for U.S. oil prices past 14% amid a consistent build-up in U.S. crude stocks and near-record production rates from Russia, Saudi Arabia and the United States have keep markets awash with oil and push prices mid-August lows. Click read more below for additional detail.
National Average Price for Regular Unleaded – Current: $2.243; Month Ago: $2.413; Year Ago: $2.519. National Average Price for Diesel – Current: $2.941; Month Ago: $3.105; Year Ago: $2.920.
Brent for July was at $66.60 a barrel by 1100 GMT (7 a.m. ET), down 10 cents from Thursday's close and trading in a narrow 55-cent range. U.S. crude for June was down 32 cents at $59.56 a barrel. Major market forecasters including the International Energy Agency (IEA) say big oil producers in OPEC are pumping at least 2 million barrels per day (bpd) more than required, filling up inventories from Europe to China. [IEA/M] [OPEC/M]
On London’s ICE Futures exchange, Brent crude for delivery in September fell $0.55 to $58.13 a barrel. On the New York Mercantile Exchange, light, sweet crude futures for delivery in August traded at $52.59 a barrel, down $0.45. The market may yet shrug off some of the despondency if data from the U.S. Energy Information Administration confirms that U.S. crude stocks fell sharply last week. On Tuesday, the American Petroleum Institute reported that crude supplies dropped 7.3 million barrels for the week ended July 10—a far larger drop than had been expected. The EIA will report its numbers at 1030 EST.