Iran oil on an already oversupplied market, a post weight restrictions as to the possible effects of excess oil on Monday edged down a further $ 30 per barrel.
Since 2014 fell by 70 per cent - which - like the United States, to force its rival producers, eventually producing enough to lower the legs to stop oil exports A report by the group of countries that expects lower global prices indicated that prices below are based on the glut of goods.
2016 will be OPEC's monthly oil report predicted that "rebalancing process begins when the year."
Brent crude, an international standard in Europe was less than $ 29 in early afternoon trading.
OPEC capital spending continues to fall as the United States reduce the number of rigs drilling wells, this year will see the world's largest production forecast decline. The production of biofuels in the United States, including 13 members of the Arab oil states included in OPEC, and Iran, according to the average of 13.5 million barrels a day, 380,000 barrels a day this year falls by an average of Nigeria and Mexico will.
Many Western sanctions against Iran over the weekend was taken up, then the Iranian authorities immediately ramping up exports by 500,000 barrels a day would be. Iranian production is sold to customers in Asia than oil, about 2.9 million barrels a day has been. Iran used a lot of local own crude.
Many organizations forecast as companies postpone or cancel plans to increase production outside the Organization of Petroleum Exporting agree with that will fall. On Monday, for example, Royal Dutch Shell for the extraction of an estimated $ 11 billion has been trying hard to recover from pulling out of the project, especially with the company's strategy is not worth "Abu Dhabi in the United Arab Emirates in the economic environment in the natural gas industry is subject to energy."
Oil prices could remain under pressure for some time, analysts said. Outside OPEC production growth is slowing agreed. But the list, which are already high at least through the first half of this year, more slowly, though, is likely to continue to build. Hedge funds and other financial buyers are betting more heavily on falling prices.
A big uncertainty is how oil demand will fare. China factor in the slow growth in demand is falling.
On Monday, Asian stocks were flat or down somewhat, and European markets were down slightly. United States stock markets closed for Martin Luther King's birthday was.
Iran, as a rule, now his former customers in Europe and elsewhere will be able to sell the oil. But in practice, something that Tehran because of US sanctions remain in effect on the dollar may face obstacles in the form of sanctions. Dollar widely used for oil trading.
Moreover, Iran, Saudi Arabia and other producers may face competition in Europe. "Saudi Arabia in anticipation of a return to Iran have been increasing their presence in Europe," Richard Mallinson, energy aspects, a market research firm based in London, an analyst said.
Saudi Arabia and Iran are both OPEC members, but their geopolitical differences have made these oils rivals. And the OPEC price differences and stress is distributed in places such as Yemen and Syria sectarian conflict between Saudi Arabia and Iran have become more heated as the only grew more intense.
The impact of Western sanctions in recent years by almost a million barrels a day of Iranian production due to drop, and the latest technology and equipment imported from Western oil field block. . Some of Iran's production can be brought back relatively quickly, the large increase can be time consuming if the facilities could be upgraded. Iran in the coming months, analysts add 400,000 barrels a day are predicting that reason.