Brent crude extends losses, falls nearly $8 in a week

Brent crude price extended losses on Tuesday after it slumped to a three-month-low at the end of the previous session, following reports that major oil producers could increase output to offset any potential supply crunch and that the US was considering waivers on Iran oil sanctions.

The international benchmark grade was last trading at $71.72 per barrel (bbl), down 0.2 percent from yesterday. On July 10, Brent had climbed above the $79-level amid ongoing supply concerns.

The US West Texas Intermediate (WTI) crude also slipped 0.2 percent to $67.94/bbl. At the beginning of this month, WTI hit a three-year high of $75/bbl.

“We reiterate our view that Brent crude oil prices will average $70/bbl this year, as we believe that the Trump administration will not take a "hard stance" on Iran sanctions heading into the US midterm election,” Bank of America Merrill Lynch said in a recent report.

OPEC and its non-member partners, including Russia, have already agreed to increase their output by a collective 1 million barrels per day.

On Friday, the Russian energy minister also announced that oil production could be increased more sharply than was agreed during last month’s Vienna meeting, news agencies reported.

Meanwhile, US Treasury Secretary Steven Mnuchin was also reported as saying that the US will consider waivers on Iran sanctions for some countries.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com