The Trump Effect, Crude Oil Prices Fall Across the Board
ICE Brent Crude fell $2.10, or 2.7%, to a low of 76.76 before recovering slightly to $77.20, down $1.66, by 1325 GMT.
NYMEX WTI Crude was down 85c at 73.26 bbl.
The price dive was aided by news Tripoli-based National Oil Corp (NOC) had lifted a force majeure on four Libyan Crude Oil ports, saying production and exports from the terminals would “return to normal levels in the next few hours.”
Libyan Crude Oil production fell to 527,000 BPD from a high of 1.28-M BPD in February following the port closures, the NOC said earlier.
Adding to the Bearish mood were signs of a possible relaxation of US sanctions on Iranian Crude Oil exports.
Us Secretary of State Mike Pompeo said Tuesday that Washington would consider requests from some countries to be exempt from sanctions due to go into effect in November to prevent Iran from exporting Crude Oil.
Washington had previously said countries must halt all imports of Iranian Crude Oil from 4 November or face US financial restrictions, with no exemptions.
The prospect of sanctions on Crude Oil exports from Iran, the world’s 5th-biggest Crude Oil producer, has helped drive up Crude Oil prices in recent weeks with both Key Crude Oil contracts trading near 3.5 year highs.
Supply to the U.S. market has also been squeezed by the loss of some Canadian oil production.
US Crude inventories fell last week by 6.8-M bbl, according to the American Petroleum Institute (API).