Oil stabilized on Wednesday after one of its biggest falls in years, but remained under pressure from oversupply and concern that a slowing global economy would depress demand. “Despite this morning’s cooling off, the price risks remain firmly skewed to the downside,” Stephen Brennock, analyst at London brokerage PVM Oil, said. Tuesday’s sell-off was encouraged by a sharp fall in world stock markets after signs that economic growth, and hence demand for energy, was slowing. There were also worries that higher U.S. interest rates could slow U.S. growth. Click read more below for additional detail.
Oil prices rose on Wednesday, recovering some ground after two days of losses, as markets braced for the imposition of U.S. sanctions on Iran next week and stock markets clawed back some of their recent losses.
New U.S. sanctions on Iran begin on Nov. 4 and Washington has made it clear to Tehran’s customers that it expects them to stop buying any Iranian crude oil from that date.
Imports of Iranian crude by major buyers in Asia hit a 32-month low in September, as China, South Korea and Japan sharply cut their purchases ahead of the sanctions, government and ship-tracking data showed.
more at source: https://www.reuters.com/article/us-global-oil/oil-prices-rise-ahead-of-u-s-sanctions-on-iran-idUSKCN1N5043