Oil drops on prospects of Iran deal and prospects of US exports

FXStreet (Mumbai) - Oil prices dropped on Wednesday after US congressional leaders agreed to put an end to US oil export ban, while Iran’s Rouhani expressed hope that a deal would be reached in January.

At the time of writing, the WTI oil was down 21 cents or 0.5% at USD 37.14/barrel. Brent futures were down 1.4% or 55 cents at USD 38.19/barrel.

The bearish pressure also came from the data released on Tuesday from industry group the American Petroleum Institute showed a surprise rise of 2.3 million barrels in US crude stockpiles last week.

The markets now await the US government’s weekly inventory data and the FOMC rate decision.