Brent Crude traded near a 12-year low in London, briefly dipping below $28 a barrel, after the lifting of international sanctions on Iran paved the way for increased supply amid a global glut. Futures were little changed after earlier dropping as much as 4.4% in London to the lowest since November 2003.
Iran is beginning efforts to boost output and exports by 500,000 barrels a day now that restrictions have ended, Amir Hossein Zamaninia, deputy Oil Minister for commerce and international affairs, said on Sunday.
Saudi Oil Minister Ali al-Naimi dismissed supply concerns with a forecast that prices will recover. “The likely increase of Iranian oil production could not have come at a more unfavorable point in time, with the oil market being oversupplied,” Giovanni Staunovo, an analyst said.
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