Oil plunges as Iran declares no intention to cut
Bijan Zanganeh triggered a selloff in oil on Tuesday, telling reporters in Vienna how Iran intends to pursue its production plans and that it won't implement any output cuts.
The country's petroleum minister is negotiating with representatives of other members of the Organization of the Petroleum Exporting Countries, on the basis of a platform adopted in September in Algeria about market management measures intended to support prices. Immediately after, other media reports indicated Saudi Arabia, the largest producer within OPEC, is ready to accept smaller reductions in output for Iran and Iraq.
Oil tumbled even though the dollar index surrendered a large chunk of daily gains, trading 0.16% up at 3:38 p.m. CET, and easing downward pressure on prices of the commodity. WTI oil for delivery in January deepened losses, whittling 3.63% down to $45.37 per barrel at ICE Futures Europe. The benchmark contract for Brent crude slumped 3.57% to $46.52 for one barrel (both 3:29 p.m. CET).