The world oil prices drop to its lowest level in 12 years or since the 2003 world oil prices, after the West lifted sanctions on the Islamic Republic of Iran, paving the way for higher crude exports from one of the world’s biggest producers of crude oil.
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According to a news report from Associated Press, Brent Crude tumbled below $28 a barrel in Asia trading hours to reach a fresh 2003 low point on fears about a worsening global supply glut.
The market then found a brief support rebounding above $29 on bargain-hunting and as OPEC hinted at a more rebalaced market, beginning this year 2016.
After the crippling embargo over Iran’s nuclear program have ended, half a millin barrels of Iranian crude set to be added to the already saturated markets after the US and European leaders ended the sanctions against the controversial government of Iran.
The Iranian government revealed on Monday that they ordered as planned as increase of 500,000 barrels per day in its oil production, but the government needs to find buyers of its oil supply.
