Oil prices fell again after the US issued yet more exemptions to its Nov. 5 sanctions against Iran which watered down their impact. Waivers that the US has granted to eight countries will allow them to keep importing up to 1.7 million barrels per day of Iranian crude and condensate. Combined waivers for South Korea, China and India already amount to 800,000 b/d, according to FGE Chairman Fereidun Fesharaki, with concessions now also given to Taiwan, Japan, Turkey, Italy and Greece. That is still lower than the average 2.2 million b/d Iran exported last year but above the 1.55 million b/d that Energy Intelligence estimates Iran exported in September and October. Oil prices have fallen sharply over the last month or so on the back of supply increases from other producers preparing for a total shutdown of Iranian volumes, and concerns about slower global demand growth especially in emerging markets. International benchmark Brent futures closed at $70.65 per barrel Thursday, down $2.24/bbl on the week, and close to the psychologically important $70/ bbl floor market bulls are seeking to protect. Physical dated Brent already went below $70/bbl on Thursday. US price-pin West Texas Intermediate (WTI) finished at $60.67/bbl for a loss of $3.02/bbl. WTI is now officially in a 'bear market,' having lost more than 20% from a peak within two months. Brent is just behind at 18%. Some of the negative sentiment can feed back into even lower prices in the short term.
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