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HOUSTON: Oil prices slumped around $4 a barrel to a three-month low on Monday amid a broad selloff after President Donald Trump said the US and Iran have signed a memorandum of understanding aiming to end the Iran war and reopen the Strait of Hormuz.
Brent crude futures fell $4.11, or 4.71pc, to $83.22 a barrel by 1:30pm EDT (1730 GMT) and US West Texas Intermediate was at $80.54, down $4.34, or 5.11pc. Both contracts fell to their lowest levels since March 10 on Monday after tumbling more than 3pc on Friday. WTI futures fell as much as $5 during the session.
“With a wall of oil supply very possibly on the way, the selloff looks justified,” said Dennis Kissler, senior vice president of trading at Bok Financial.
Iran lowered the official selling price for its light crude oil grade for Asian buyers to $7.15 a barrel above the Oman/Dubai average for July, the state-owned National Iranian Oil Company said on Monday, compared with the previous month’s premium of $13 a barrel.
