Brent and WTI have fallen below $37 per barrel

Moscow. December 28. The fall in oil prices intensified in the course of trading on Monday on the statements of Iran about the priority of increasing production of hydrocarbons, reports Bloomberg.

Last week, oil has risen almost to the highest level since the beginning of the month.

On Monday falling of the prices for all commodities have contributed to renewed concerns about the sustainability of the Chinese economy. The profits of industrial companies in China fell in November for the sixth consecutive month, the decline was 1.4% in annual terms. Chinese stock index Shanghai Composite on December 28, lost 2.6 percent – the highest since the end of November.

The cost of the February futures for Brent crude on London’s ICE Futures exchange to 18:12 Moscow time has decreased by $1.27 (3,35%) – to $36,62 per barrel.

Futures price for WTI crude oil for February on the new York Mercantile exchange (NYMEX) dropped by this time to $1.33 (3,49%) to $36,77 per barrel.

“Fundamentals remain weak after a short rally seen last week. It’s not like anyone has cut the supply of oil, and we still have to fight against the fears of an economic slowdown not only in China but also in Europe,” said Tradition Energy senior analyst gene Mcgillian.

Iran to restore oil supplies to the level observed before the introduction of economic sanctions against the country, is a priority, said the Minister of oil of Iran Bijan Namdar Zanganeh.

Meanwhile, the head of oil Corporation, Iran’s National Iranian Oil Rokneddin Javadi again confirmed that the country intends to increase oil exports by 500 thousand barrels a day during the week after the lifting of sanctions.

As noted by Bloomberg, the average price of Brent by the end of 2015 will be minimal for 11 years due to excessive supply of oil on world markets. The increase of oil supply from Iran is expected to reinforce the imbalance in the ratio of supply and demand.