Crude Oil continues extended slump, as Dollar surges to near 3-month highs
Crude futures extended its recent downturn on Monday as the dollar surged to multi-month highs, amid continuing concerns of oversupply in global energy markets. On the New York Mercantile Exchange, WTI crude for September delivery traded between $50.37 and $51.57 a barrel before settling at 50.38, down 0.84 or 1.61% on the session. On Friday, Texas Long Sweet futures plunged more than 1.5% to an intraday low of $50.16 – nearly dipping below $50 a barrel for the first time since early-April. On the Intercontinental Exchange (ICE), brent crude for September delivery wavered between $56.45 and $57.44 a barrel before ending the session at 56.60, down 0.52 or 0.91%. The spread between the international and U.S. domestic benchmarks of crude stood at 6.22, just above Friday’s level of 6.21. On Monday, the United Nations Security Council unanimously approved last week’s accord between Iran and a group of Western powers on a comprehensive nuclear deal. The lifting of longstanding, severe economic sanctions against Iran could allow the Gulf state to double its export level over the next year. While the nation is expected to flood global markets with Iranian crude after the sanctions are lifted, it could still be several months before the Gulf state is able to ramp up its exports. The pact reached last week still must complete a 60-day review from U.S. Congress and could be hampered by even further delays due to political wrangling.
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