Oil suffers biggest monthly decline in 12 months

Brent oil opened at $43.51 in Monday trading after its biggest monthly decline in a year during July.

High product stocks globally have been weighing on price recently and the question is, has oil price done enough to tempt in the European consumers as we start a new month with new allocations ?

Analysts say it is worth noting the market is currently 1.70 $/bbl above the low print last week.

Meantime, Russia’s Energy Minister Alexander Novak Glut said in an interview that the glut in the global oil market was being exacerbated by a return of production in Canada and increased supply in Iraq.

He added that the market may reach balance by mid-2017 and he retains an outlook for 2016 crude price at $40-$50/bbl. He also said the fundamentals would not let oil prices rise above $50/bbl.

Data show that Iran has returned oil output to about 80% of the pre-sanctions levels and needs 2-3 months more to restore fully, Iranian Communications Minister Mahmud Vaezi-Jazai says in Moscow.

Iran plans to discuss new projects with Russian companies soon and has received proposals on Anaran project from Lukoil.

Oil production is now at 1.9m bbl/day, the international press quoted  Minister of Power, Works and Housing Babatunde Fashola as saying in London.