Oil Plunges To $28 Cycle Lows As Iran Supply Looms, Stocks Slide

February WTI Crude futures have plunged to new cycle lows at $28.60 (down 2.7%) as Iran supply looms over an already over-glutted global crude market. Brent is down even more (-3.7%). Dow futures are down 60 points at the open.

  • *WTI OIL FALLS AS MUCH AS 2.7%, BRENT CRUDE DROPS 3.7%

Feb futures (which have just rolled) are under $29...

 

And the new on the run March contract is trading $29.60, down 2.6%...

 

It seems Nomura may be right:

“Iran’s additional crude shipments have the potential to further depress prices, perhaps to as low as $25 a barrel,” Gordon Kwan, Hong Kong-based analyst at Nomura Holdings Inc., says by e-mail Sunday.

And crude weakness (and fears over US banks) are weighing on US equities... Dow futures down 65 points