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London - Oil fell below $118 a barrel on Monday, pressured by lingering concern over the eurozone debt crisis although supply worries from tightening Western sanctions on Iran checked the slide.
“On the supply side, Iran continues to be a risk which we can’t ignore at all,” said Ric Spooner, chief market analyst at Australia-based CMC Markets.
“It seems quite unlikely that we will be seeing any swift resolution to the standoff between the West and Tehran over their nuclear programme.”
Brent crude dropped $1 to $117.76 a barrel in moring trade while US crude was down 86 cents at $103.02.
China, one of Iran’s top crude oil buyers, made sharp cuts in imports during the first quarter as companies haggled with Iran’s state-run oil company over prices and contract terms.
March crude imports from Iran fell 54.1% from a year earlier to 253 302 barrels per day (bpd), customs data showed on Monday.
The United States and Europe have imposed sanctions on Iran aimed at halting its controversial nuclear programme by choking off its oil export revenues.
Iranian oil officials say crude exports have slipped to 2.1 million bpd, compared with an average 2.3 million bpd in the last Iranian year that ended on March 19.
The European Union is also planning an embargo on Iranian oil imports from July 1. While a review is possible in the next two months, there is no economic reason now to change plans for the ban, a senior EU official said on Friday.
At a Group of 20 finance ministers’ meeting in the United States last week, officials agreed to closely watch oil prices and carry out “additional actions” as needed.
Tightening sanctions on Iran over the Islamic Republic’s disputed nuclear programme helped send Brent above $128 a barrel in March, the highest since 2008.
The view that the risk of a hard economic landing for China, the world’s second-largest oil consumer, has now largely passed is expected to support crude, but concerns that the eurozone debt crisis would dent demand may keep a lid on gains.
Global finance chiefs pressed Europe in weekend talks to quickly put in place the economic reforms needed to stamp out its debt crisis.
“On the supply side, Iran continues to be a risk which we can’t ignore at all,” said Ric Spooner, chief market analyst at Australia-based CMC Markets.
“It seems quite unlikely that we will be seeing any swift resolution to the standoff between the West and Tehran over their nuclear programme.”
Brent crude dropped $1 to $117.76 a barrel in moring trade while US crude was down 86 cents at $103.02.
China, one of Iran’s top crude oil buyers, made sharp cuts in imports during the first quarter as companies haggled with Iran’s state-run oil company over prices and contract terms.
March crude imports from Iran fell 54.1% from a year earlier to 253 302 barrels per day (bpd), customs data showed on Monday.
The United States and Europe have imposed sanctions on Iran aimed at halting its controversial nuclear programme by choking off its oil export revenues.
Iranian oil officials say crude exports have slipped to 2.1 million bpd, compared with an average 2.3 million bpd in the last Iranian year that ended on March 19.
The European Union is also planning an embargo on Iranian oil imports from July 1. While a review is possible in the next two months, there is no economic reason now to change plans for the ban, a senior EU official said on Friday.
At a Group of 20 finance ministers’ meeting in the United States last week, officials agreed to closely watch oil prices and carry out “additional actions” as needed.
Tightening sanctions on Iran over the Islamic Republic’s disputed nuclear programme helped send Brent above $128 a barrel in March, the highest since 2008.
The view that the risk of a hard economic landing for China, the world’s second-largest oil consumer, has now largely passed is expected to support crude, but concerns that the eurozone debt crisis would dent demand may keep a lid on gains.
Global finance chiefs pressed Europe in weekend talks to quickly put in place the economic reforms needed to stamp out its debt crisis.
