Crude Oil Drops To Lowest In Nearly A Month

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Crude prices in the U.S. closed down to the lowest level in nearly a month on Tuesday as a stronger dollar and doubts about OPEC’s adherence to supply curbs hit sentiment.

U.S. crude on the New York Mercantile Exchange dropped 2.19% to $50/82 a barrel, while global benchmark Brent crude gained 2.37% to $53.64 on London’s Intercontinental Exchange.

Iraq’s record exports out of the southern port of Basra on the Persian Gulf imply that any cuts by Iraq would come from the north of the country, analysts said, where significant oil supplies are overseen by the semi-autonomous Kurdish region that is not formally part of an OPEC deal to trim 1.2 million bpd from production.

Separately, Iran has sold more than 13 million barrels of oil held on tankers at sea, capitalizing on an OPEC output cut deal to trim 1.2 million barrels per day from global markets, from which it is exempted along with Libya and Nigeria, cutting the quantity of oil it stores on tankers from 29.6 million barrels last October to just 16.4 million barrels now.

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