Oil is getting cheaper despite the reduction in OPEC supplies, sanctions against Iran

Investing.com – SINGAPORE (Reuters) – Oil prices are falling on Wednesday under pressure from a high supply, despite a reduction in production by OPEC countries and the imminent introduction of US sanctions against Iran, a major oil exporter.

By 9:15, futures for the North Sea blend of Brent dropped 0.3 percent to $ 78.23 per barrel.

Futures contracts for US light crude WTI traded at $ 71.08 per barrel, which is 0.3 percent lower than the last close.

Despite the decline in prices, oil quotes remain near the peaks from November 2014 – $ 79.47 for Brent and $ 71.92 for WTI.

Analysts predict that oil markets will remain at this level for most of the year, taking into account the forthcoming introduction of US sanctions against Iran and strong demand for oil.

“The rising price of oil carries an increased risk for all commodities,” Morgan Stanley (NYSE: MS) said in a research note to customers this week.