Brent crude oil declined from over $86 a barrel recorded last week to $83.53 a barrel on Monday. While the U.S. West Texas Intermediate (WTI) drop 54 cents to $73.80 per barrel.
U.S. sanctions are expected to target Iran’s crude oil exports from November 4 and further cut global oil supplies. A move experts believe will push global oil prices to $90 a barrel by Christmas and $100 a barrel by the New Year.
However, in an effort to force lower oil prices as largely demanded by President Trump, a U.S. government official said on Friday that the administration is considering some exemptions for countries that have already reduced their imports of Iranian oil.
A sign Iran oil exports won’t drop to zero in November as India alone is expected to buy 9 million barrels in November, according to a report by Reuters.
Accordingly, hedge funds cut their bullish bets on U.S. crude to the lowest level in almost a year, data showed on Friday.
Again, the ongoing trade war between the US and China also weighed on crude outlook on Monday, especially after data showed the world’s largest importer of crude oil, China’s, manufacturing purchasing managers index grew slower than expected for a second consecutive month.
Chinese stocks declined on Monday despite the People’s Bank of China lowering its bank’s reserve ratio. Another indication of weak business sentiment amid rising uncertainty.