Oil slides to 6-month low as supply fears subside

Bloomberg

Oil traded near a six-month low as the prospects of a tight global market at the end of the year further receded after the US softened the restart of sanctions against Iran.
Crude advanced 0.6 percent in New York. Sanctions against Iran were reimposed on Monday, though eight countries were allowed to continue temporarily buying some crude from the country, according to US Secretary of State Michael Pompeo.
Hedge funds reduced bullish bets for an eighth week as extra supplies from OPEC and the US assuaged concerns of a potential shortfall.
“The US has done a U-turn as compared with its previous announcements” on Iran, said Car- sten Fritsch, an analyst at Commerzbank AG in Frankfurt. “It thus comes as no surprise that speculators are squaring their net long positions in crude oil, which is likewise weighing on prices.”
Oil slid from a four-year high last month as speculation grew that Washington would grant waivers on Iranian sanctions to lower pump prices ahead of the US midterm elections, while other producers in the Organization of Petroleum Exporting Countries (OPEC) pledged to offset any supply gaps. Meanwhile, a trade war between the world’s two biggest economies stoked concern that fuel demand would suffer even as President Donald Trump said he wants to reach a pact with China.
West Texas Intermediate crude for December delivery dropped as much as 1 percent to $62.52 a barrel on the New York Mercantile Exchange, the lowest since April 9, before recovering 0.6 percent
to $63.52 as of 1:51 pm London time. Futures slid 6.6 percent last week. Total volume traded on Monday was about 4 percent above the 100-day average.
Brent futures for January settlement rose 71 cents to $73.54 a barrel on the London-based ICE Futures Europe exchange.