Oil prices fell below $30 on Friday after a 2% surge on Thursday as investors expect that supply of Iranian Oil to the world market will further worsen the surplus.
WTI refreshed its local lows plunging as low as the $29.66 level, making this the third consecutive week of a steady decline. The price has already dropped by almost 20% from the start of 2016.
Iran Oil Minister Bijan Zangeneh said earlier that Oil supplies from Iran will be resumed under any market conditions. With current acute political tensions between Iran and Saudi Arabia, Oil market is likely to become another arena for confrontation.
With prices dropping below the $30 level, tearing important psychological barrier, it is likely that any substantial resistance will be offered only at the $25 and $20 levels.Publication source