World powers removed economic sanctions on Iran, over the weekend as International Atomic Energy Agency (IAEA) reported that Iran has abided by the all the clauses agreed on last July nuclear accord. There were oppositions from some of the gulf countries and Israel, but that couldn't hold off the sanctions removal.

Oil price has dropped sharply again today in response, especially Brent benchmark, which is down more than 4% already. Only piece of good news is US market is closed today, which means some sellers may not be there in the market, especially during New York session. Brent has now fallen to about a Dollar discount to WTI, North American benchmark.

Iran's sanction removal means another half a million increase to crude supply in the global market. While it usually takes time to boost exports, Iran has stockpiled crude in anticipation of this sanctions removal, so tankers containing thousands of barrels of crude stand ready to be shipped and some of the tankers are already in Asia.

At this point, fighting the Iran supply with lower price is next to impossible as Iran is looking for any price to sell the cargoes.

Brent is currently trading at $28.2/barrel.