Oil dips as supply adequate despite Iran sanctions, but market tightening

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Oil eases as supplies adequate for now, despite Iran sanctions

SINGAPORE - Oil prices fell on Wednesday amid signs that global markets remain adequately supplied, despite a jump to 2019 highs this week on Washington’s push for tighter sanctions against Iran.

U.S. West Texas Intermediate crude futures were at $66.05 per barrel, down 25 cents, or 0.4 percent, from their previous settlement. Stephen Schork of the Schork Report energy newsletter, said the shift to backwardation in the past four months was “a sign that the market’s underlying fundamentals have shifted away from a spot market that is well supplied to a market where demand is beginning to overtake supply.”

Despite the tight spot market, analysts said global oil markets remained adequately supplied thanks to ample spare capacity from the Middle East dominated Organization of the Petroleum Exporting Countries , Russian and also the United States.

 

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