Brent at 12 year low amid concerns over China demand, Iran supply

Troubled-Oil

Jan 14, 2016 (LBO) – Brent oil prices have fallen below 30 US dollars a barrel in New York for the first time in 12 years amid concerns over Chinese fuel demand and Iran fuel supply, foreign media reports said.

Brent oil has dropped below 30 US dollars a barrel for the first time since April 2004.

On the New York Mercantile Exchange, West Texas Intermediate for February delivery has dropped 4.1 percent, to 30.13 US dollars a barrel yesterday.

The February delivery has even touched 29.93 US dollars, the lowest intra-day price since December, 2003.

The US Energy Information Administration also said country’s crude inventories rose 234,000 barrels to 482.6 million last week.

Crude output in the US has increased by 8,000 barrels a day to 9.23 million, the highest since August.

Crude oil in Asian trade has also fallen on Thursday, with Brent marking 12-year low amid concerns over sluggish economic recovery in China.

Prices dropped to 29.73 US dollars a barrel, the lowest since February 2004 and down more than 1.5 percent.

Meanwhile crude has fallen 1.8 percent in London amid speculation over expected climb in Iranian oil shipments.

Prices for February settlement has decreased 3.3 percent, to 30.50 US dollars a barrel on the London based ICE Futures Europe exchange.

The February delivery has touched 30.34 US dollars, the least since April 2004.

National Iranian Oil Company last month said they are ready to add 500,000 barrels a day of exports within a week of the removal of sanctions and 1 million within six months.