Oil heads for 8-month low as Iran sanctions waivers ease shortage fear

US says Iran waivers intended to avoid oil-market shock

Oil dropped toward an eight-month low as concerns about a worldwide supply squeeze eased.

Futures fell as much as 2.8 per cent in New York on Monday. American crude stockpiles have been expanding for almost two straight months. Meanwhile, U.S. government waivers will allow some of Iran’s biggest customers to buy crude from OPEC's No. 3 producer for another six months, dampening shortage fears.

“Oil prices don’t have any real reason to rally significantly,” said Phil Streible, senior market strategist at R.J. O’Brien & Associates LLC in Chicago.

Crude has tumbled about 20 per cent since touching a four-year high last month as