By: Mahmoud Gamal
Mubasher: Global oil prices declined in Monday's early trades, weighed by over concerns of increased supply from the US and Iran.
Brent crude hit the lowest level since 2008, falling to $36.32, while the US crude oil retreated to $34.53.
The US Congress ended 40-year-old ban on oil export, according to a previous statement.
There are fears that the US and Iran’s oil flow to markets will lead to an oversupply that will have a negative impact on oil prices, said oil analyst and economist Ahmed Hassan Karam.
Iran plans to ramp up sales in early 2016 once sanctions against Tehran are lifted, he added.
On the sidelines of at the start of a meeting of the Organization of Arab Petroleum Exporting Countries (OAPEC) in Cairo, Qatari Energy Minister Mohamed bin Saleh al-Sada said that the situation in the oil market has become a challenge for development plans but there was no room for pessimism.
He added that the gap between supply and demand has widened, which led to the quick drop in prices to record levels.
The dollar increase, which followed the Federal Reserve’s decision to raise interest rates, led to raising the oil cost in respect to the countries that use different currencies.
Translated by: Julian Nabil
