Rocky C
01-19-16, 09:01 AM
Oil prices reached a 2003 low below $28 per barrel on Monday as the market braced for a rise in Iranian exports after the lifting of sanctions against Tehran over the weekend.
CNBC and several local outlets reported that prices at two gas stations in Houghton Lake, Michigan, had dropped to below a half-dollar per gallon, while a nearby Citgo was filling cars for 95 cents a gallon. "There have been long lines at the stations for most of the weekend, according to the three stations, with police officers directing traffic in the area due to the congestion."
The United States revoked sanctions that had cut Iran's oil exports by about 2 million barrels per day (bpd) since their pre-sanctions 2011 peak to little more than 1 million bpd.
Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), issued an order on Monday to increase production by 500,000 bpd, the country's deputy oil minister said.
Worries about Iran's return to an already oversupplied oil market drove down Brent crude to $27.67 a barrel early on Monday, its lowest since 2003. The benchmark was down 12 cents at $28.82 by 1537 GMT.
CNBC and several local outlets reported that prices at two gas stations in Houghton Lake, Michigan, had dropped to below a half-dollar per gallon, while a nearby Citgo was filling cars for 95 cents a gallon. "There have been long lines at the stations for most of the weekend, according to the three stations, with police officers directing traffic in the area due to the congestion."
The United States revoked sanctions that had cut Iran's oil exports by about 2 million barrels per day (bpd) since their pre-sanctions 2011 peak to little more than 1 million bpd.
Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), issued an order on Monday to increase production by 500,000 bpd, the country's deputy oil minister said.
Worries about Iran's return to an already oversupplied oil market drove down Brent crude to $27.67 a barrel early on Monday, its lowest since 2003. The benchmark was down 12 cents at $28.82 by 1537 GMT.