Oil prices have taken further southward graph to below $30 a barrel amid oversupply concerns due to increased Iranian crude exports into an already flooded market.
Iran is a member of Organization of the Petroleum Exporting Countries (OPEC) and international sanctions against it are now lifted. As an aftermath the country said to be adding about 500,000 barrels to the market within weeks of the relief.
The global oil prices are very close to 12-year low and the market need to be thankful to the US shale oil revolution as in past about six years the American oil production has almost doubled.
After the oil prices plummeted to $29 a barrel Friday, capping a 13 percent decline for the week, the major stock indexes in Wall Street and Europe closed down over 2 percent.
Chief investment officer at FIS Group in Philadelphia, Tina Byles Williams, said this is the final capitulation and crude may even reach as low as $20 a barrel.
Analysts warn the sanctions life on Iran now has opened up door to a wave of new oil.
Apart from all these China’s shares tumbled too on Friday and Shanghai index closed down 3.5 percent and this is the lowest since December 2014. The yuan has weakened further.
China is second biggest oil consumer in the world.
