Mubasher: Oil prices levelled down on Monday after US sanctions against Iran’s oil exports were eased by waivers that would allow major importers to still buy Iranian crude, even for a temporary term.

Since early October, Brent crude futures fell by as much as 16% in value, while US West Texas Intermediate (WTI) lowered by more than 18% since then, especially after hedge funds have slashed their bullish wagers on crude to a one-year low by the end of last month, data showed on Friday.

Prices started seeing a downward trajectory after Washington had allowed several countries to continue importing crude from Iran despite the sanctions, which officially started on Monday, 4 November.

On Friday, the US said it would temporarily allow eight importers, without naming them, to keep importing oil from Iran, the Organization of Petroleum Exporting Countries’ (OPEC) third-largest producer.

“China, India, South Korea, Turkey, Italy, the United Arab Emirates and Japan have been the top importers of Iran’s oil, while Taiwan occasionally buys Iranian crude,” according to Reuters.

“Iranian exports and production had been declining steadily...Iranian exports show a decline of more than 1 million barrels per day (bpd) as of October from May,” Edward Bell of Emirates NBD bank told the news agency.

Bell also warned that consumption might be contracting on the back of an economic slowdown, citing a sharp drop in refining profits.

“Sagging refining margins at a time of weak crude prices sends a very telling message to us that demand is underperforming,” he added.

By 8:11 am GMT, US Nymex crude futures fell 0.54% to $62.80 per barrel (pb), while global benchmark Brent futures went down 0.37% to $72.56 pb.