Oil falls through important support but recovers

Oil prices fell to multi-week lows as the increase in Iranian exports and the resumption of oil supplies from Libya and Nigeria heightened investors' fears that the global glut will persist.

The cost of oil futures for Brent and WTI fell by 9-10 percent in one week, stressing the volatility in the oil market. "We've seen a lot of bearish news this week. The weak fundamental factors are putting pressure on the market.", - Said Frank Klumpp, oil analyst at LBBW.

Strengthening of the dollar against the backdrop of positive US data also important for oil trading. The US Dollar Index, showing the US dollar against a basket of six major currencies, rose 0.7%. As oil prices are tied to the dollar, a stronger dollar makes oil more expensive for holders of foreign currencies.

Up to August, Iran, the third largest producer of OPEC exports increased by more than 2 million barrels per day. Most of the additional Iran's exports went to Asia and Europe. Daily crude oil imports from Iran and India rose in August to the highest level in at least 15 years. At the same time, Austria's OMV said it has taken delivery of Iranian oil in the port of Italy. It was the first cargo from Iran since 2012.

There are also signs of the resumption of oil supplies from Nigeria and Libya. Earlier, crude oil exports by these countries has been hampered by conflict and unrest. This week, the State Oil Corporation of Libya has removed restrictions on the supply of oil from a number of ports with total capacity of 300 thousand barrels per day. Meanwhile, Exxon Mobil and Royal Dutch Shell said that are ready to resume the supply of Nigerian grade Qua Iboe. According to estimates, Libya and Nigeria may return the market about 800 thousand barrels per day.

The cost of the October futures for US light crude oil WTI (Light Sweet Crude Oil) fell to 43.28 dollars per barrel on the New York Mercantile Exchange.

October futures price for North Sea petroleum mix of mark Brent fell to 46.12 dollars a barrel on the London Stock Exchange ICE Futures Europe.