The price of oil has dropped again on Friday 2nd November, resulting in a loss for the fourth straight week. Traders reacted to concerns over oversupply due to the announcement made by the United States that eight jurisdictions will be exempted from sanctions placed on Iran.
The U.S. Secretary of State, Mike Pompeo, delivered this message via conference call. The announcement means that the biggest buyers of oil from Iran will be allowed to continue importing after the U.S. economic sanctions on the country come back into effect on Monday.
The price for U.S. light crude ended trading on Friday at $63.14, a drop of 55 cents, and a total decline of 6.6% for the week.
Meanwhile, the price of Brent crude oil increased by 2 cents per barrel to reach $72.91 on Friday. Nevertheless, the contract has still seen a decline of 6% for the week and a total decrease of almost 16% since it reached its peak in October 2014.
Mike Pompeo did not disclose which jurisdictions would be exempted, but he did mention that the European Union and its 28 member states would not be among them.
News agency Bloomberg cited an unnamed U.S. official when they reported that eight countries would be allowed to continue importing Iranian oil, including India, South Korea, and Japan. Currently, the biggest buyer of oil from Iran, China, is still in negotiations with the U.S.