Oil Slumps On Prospect Of Increasing Iranian Exports



Reuters

NEW YORK, July 15 (Reuters) - Oil prices fell about 3 percent on Wednesday on expectations increased exports from Iran will add to a global supply glut and on rising inventories at the delivery hub at Cushing, Oklahoma.

Tuesday's agreement on Tehran's nuclear program between six world powers and Iran is expected to result in the lifting of sanctions, which have limited sales of Iranian oil for several years, in early 2016.

Brent August crude fell $1.46, or 2.5 percent, to settle at $57.05 a barrel. The August contract expires on Thursday.

U.S. August crude slumped $1.63, or 3 percent, to settle at $51.41.

Oil prices slumped even though U.S. crude inventories fell 4.3 million barrels last week, according to the Energy Information Administration (EIA), as refiners boosted throughput to a record level.

While the inventory slide was more than analysts' expectations for a decrease of 1.2 million barrels, the drop was less than the 7.3 million-barrel decline reported on Tuesday by the industry group American Petroleum Institute (API).

Crude stocks increased at the Cushing, Oklahoma, delivery hub for the U.S. crude contract.


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