TEHRAN: Oil prices fell today in response to a rise in Iranian exports that swelled the global supply glut. Brent crude oil futures were trading at $50.63 per barrel this morning, down 26 cents, or 0.5%, from their previous close. Meanwhile, US West Texas Intermediate crude was down 32 cents, or 0.66%, at $48.49 a barrel. Traders said prices had been hit by the latest rise in Tehran’s exports, which are expected to have reached about 2.8m barrels per day last month. This almost matches the 2011 peak in shipments before sanctions were imposed.
Opec’s announcement last week that it is planning to cut output has caused a flurry of optimism in the industry. There is hope exporters outside the club, such as Russia, will join in, but the group will not finalise the extent of the output cut until its policy meeting in November. The Financial Times says the industry should not “bet” on Moscow capping oil output because the “cost-efficient industry is coping well with weaker crude prices”. In a note to clients, Morgan Stanley said: “For now, optimism has returned and the market will anxiously await any confirmation of the agreement or additional non-OPEC participation.”
