Oil extends losses as traders weigh Iran supply, demand outlook

Oil extended losses at the start of the week as traders weighed the prospect for more Iranian supply and the outlook for demand.

West Texas Intermediate futures dipped below $92 a barrel after closing 2.4 per cent lower on August 12. European Union proposals to revive a nuclear agreement are acceptable if Tehran can be reassured on various issues including sanctions, according to a report from Iran’s state-run IRNA.

Crude has ticked lower over the past couple of months on concerns about an economic slowdown, shedding all the gains put on following the Ukraine crisis. Money managers have cut their bullish bets on WTI to the lowest in over two years, according to the Commodity Futures Trading Commission.

Oil is still up around 20 per cent this year and the surge in energy prices over the first half have underpinned record earnings for producers. Saudi Aramco posted the biggest quarterly adjusted profit of any listed company globally, following its big oil rivals such as Shell Plc and Exxon Mobil Corp.

China is due to release a raft of commodity data for July on Monday, including figures on oil production and refining. The nation’s crude imports rose last month from the lowest level in four years.