Oil is cheaper because of the exclusion of sanctions against Iran for a number of countries

© RIA Novosti / Ilya Petliurite in photobacteria oil. Archival photoOil is cheaper because of the exclusion of sanctions against Iran for a number of countries© RIA Novosti / Ilya Petliurite the image Bank

World oil prices are falling Tuesday afternoon amid Washington provide temporary exceptions to the Iranian sanctions for a number of countries, according to the auction.

As of 14.10 GMT the price of January futures for North sea petroleum mix of mark Brent has decreased on 0,36%, to 72.91 per barrel, the price of December futures for WTI — by 0.25% to 62.94 USD per barrel.

The President of the United States Donald trump announced in may that Washington is out of agreement with Iran on its nuclear program. He also reported the return of all sanctions against Iran including secondary, that is, against other countries doing business with Iran. Once again, the U.S. has enacted on August 7 some of the sanctions against Iran. More substantial sanctions, which involved the export of oil, entered into force on 5 November. Washington has said it aims to bring Iranian oil exports down to zero and urged its customers to abandon such purchases.

While on Monday, the US Secretary of state Mike Pompeo announced that Washington provides temporary exceptions to the oil sanctions to China, India, Italy, Greece, Japan, South Korea, Taiwan and Turkey.

The regional Director of the analytical centre Economist Intelligence Unit (EIU) Pat Teyker (Pat Thaker) told Reuters that the U.S. decision on the granting of temporary exclusions is currently perceived by the market as a departure from Washington’s goals to reduce Iranian oil exports to zero.

At the same time, according to the estimates S&P Global Platts Analytics, who leads the Agency, the result of American sanctions, oil exports from Iran will be reduced in November to 1.1 million barrels per day. In September, according to vessel tracking Refinitiv Eikon, the volume of fuel exports from Iran amounted to 1.6 million barrels a day, and in October of 1.33-1.5 million barrels a day.