Two oil benchmarks, Brent Crude and West Texas Intermediate, dipped to prices that are 20 percent below what they were just a month ago.
USA crude futures for December settlement were trading at $61.90 per barrel in early NY business, down from $66.34 per barrel a week earlier.
China will still be allowed to import some Iranian crude under a waiver to US sanctions that will enable it to purchase 360,000 bpd for 180 days, two sources familiar with the matter told Reuters on Tuesday.
Ministry of External Affairs (MEA) Spokesperson Raveesh Kumar on Friday reacted on the United States granting India and other nations waiver from Iran oil sanctions. Washington has granted 180-day exemptions to eight importers - China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey.
"America wanted to cut to zero Iran's oil sales ... but we will continue to sell our oil ... to break sanctions", Rouhani said.
Iran's oil minister on Thursday predicted a painful time ahead for worldwide oil customers as USA sanctions take hold, saying waivers that Washington granted to eight major oil-importing countries are not enough for market demands.
New U.S. Sanctions Against Iran Go Into Effect
He said he could not rule out that the us administration would extend the waivers beyond six months. Thousands of Iranians chanting "Death to America" rallied on Sunday, rejecting calls for talks.
In the U.S., crude production increased to 11.6 million barrels per day last week, the highest level on record, according to Energy Information Administration data. It makes the United States the world's biggest producer of crude.
At the same time, output from the world's top-three producers, Russian Federation the United States and Saudi Arabia, is rising. That policy, in place since 2017, helped end a historic oil price collapse that punished US energy companies and oil-exporting nations alike.
"An analysis of crude export weighted fiscal breakeven price for major gulf economies (Iran, Iraq, Kuwait, Qatar, Saudi Arabia and UAE) suggests optimal price level of ~$70.6/bbl". The EIA expects output to break through 12 million bpd by mid-2019, largely thanks to a surge in shale oil production.
China's crude imports rose 32 percent in October compared with a year earlier to 9.61 million barrels per day (bpd), customs data showed.
To a question on the United States exemption from sanctions for Chabahar Port, Mr Kumar said: "We have taken note of the U.S. statement that exception has been provided under the Iran Freedom and Counter Proliferation Act of 2012 with respect to development of Chabahar Port and the construction of an associated railway line". "Opec and Russian Federation may use cuts to support US$70 per barrel", said Ole Hansen, head of commodity strategy at Saxo Bank.