Last week, CEO of the National Iranian Oil Company (NIOC) Ali Kardor had said the country would soon start offering oil for exports via its national stock exchange. The U.S. has been pulling diplomatic and economic strings to convince Iran's clients to stop importing buying its oil.
Jahangiri further emphasized that the United States efforts to encourage Saudi Arabia to replace Iran's oil in markets were in vain, stressing that oil prices would nonetheless rise if Iranian supplies were to be cut off.
Brent for December settlement, which expires Wednesday, traded at $77.15 a barrel on the London-based ICE Futures Europe exchange, down 19 cents. WTI lost 2.93 US dollars to settle at 66.43 dollars a barrel, and Brent sank 3.39 dollars to 76.44 dollars per barrel. Both contracts have fallen about $10 a barrel from four-year highs reached in the first week of October. "This adage was on full display last week as a global rout on equity gauges dragged the energy complex lower", PVM Oil Associates strategist Stephen Brennock said.
Oil has been caught in the global financial market slump this month, with equities under pressure from the trade war between the world's two largest economies.
U.S. President Donald Trump said on Monday he thinks there will be "a great deal" with China on trade but warned that he has billions of dollars worth of new tariffs ready to go if a deal is not possible.
Brent oil prices dipped on Tuesday, weighed down by ongoing weakness in global stock markets and by signs of rising global supply despite looming sanctions on Iran's crude exports.
Iran's First Vice President Es'haq Jahangiri was quoted by media as saying that the government of President Hassan Rouhani had already devised mechanisms to counter the impacts of returning United States sanctions against the country's oil exports. "The second one is global economic growth momentum slowing down", said IEA chief Fatih Birol.
In July, First Vice-President Eshaq Jahangiri said Iran would be looking to offer oil via the stock exchange to counter the USA sanctions on the country's oil exports.
Additionally, hedge fund managers have reportedly cut their bullish positions in crude futures and options for four weeks in a row to their lowest since July 2017, due to an uncertain demand outlook and other factors: in an editorial for Reuters, John Kemp, founding partner at Again Capital, wrote that "Rising oil production from Saudi Arabia, the United Arab Emirates, Kuwait, and Russian Federation has eased concerns about the availability of supplies once USA sanctions on Iran are re-imposed in November".
Oil production from these three producers reached 33 million barrels per day (bpd) for the first time in September, Refinitiv Eikon data showed.
But there appears to be no significant shortage of crude.