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Crude Drops to More Than 1-Month Low

September 16, 2016 at 16:23 by Vladimir Vyun

Futures for crude oil logged a drop by more than 1% today due to persisting concern about global glut. Reports about an increase of supply from Iran were not helping the matter. The country doubled its exports since December, closing in on the levels it reached before Western countries implemented trade sanctions over the controversial nuclear program. Analysts think that it is likely that Iran will continue to pump even more oil in an attempt to regain its share of the market seized by other countries during the period of sanctions.

Iran is not the only source of concerns. Nigeria and Libya are also going to add to the surplus as they are restoring their production. Previously, supply from those counties was hampered by conflicts and unrest, but it is likely to recover as things calm down.

October futures for WTI crude oil dropped 1.82% to $43.11 per barrel as of 16:12 GMT on NYMEX today. Brent crude for delivery in November declined 1.31% to $45.98 per barrel on ICE.

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