Crude Oil Dips Despite US Sanctions – What’s Going On?
Arslan Butt • 1 min read
WTI crude oil prices continue to trade its bearish momentum despite the drop on Monday as the start of US sanctions against Iran’s fuel exports. If you are wondering what caused this drop, let me help you understand this…
1- The US-China trade war has impacted crude oil’s demand significantly which is causing a bearish impact on the market.
2- The US introduced sanctions against Iran on Monday, replacing standards under a 2015 nuclear deal arranged by the administration of President Barack Obama, and scoring 300 new designations including Iran’s oil.
In response, the Iranian President Hassan Rouhani told in a speech broadcast that Iran will disrupt US sanctions and proceed to sell oil.
Moreover, the United States has also granted some exemptions and they will temporarily let eight importers keep buying Iranian oil. Therefore, the market is reversing the impact of potential sanctions which were already priced in.