Broader oil markets continue to see steady declines, and WTI barrels have fallen by 20% in barely sick weeks.
The drop marks a stunning reversal from last month, when oil prices hit almost four-year highs as the market braced for potential shortages once USA sanctions on Iran, OPEC's third biggest oil producer, snapped back into place.
Oil peaked in early October on concerns that USA sanctions on Iran that came into force this week would deprive the oil market of substantial volumes of crude, draining inventories and bringing shortages in some regions.
Crude oil prices fell Tuesday, briefly entering bear market territory, after the USA said it will allow some of Iran's biggest customers to continue importing the Opec member's crude without violating reinstated us sanctions.
In the United States, crude production increased to 11.6 million barrels per day last week, the highest level on record, according to Energy Information Administration data.
"Knowingly providing these services to sanctioned Iranian shipping companies will result in the imposition of USA sanctions", Hook told reporters.
The EIA is predicting that output will reach 12.1 million barrels per day in the new year.
Iran's exports peaked at 2.8 million barrels per day (bpd) in April, including 300,000 bpd of condensate, a lighter form of oil. At the same time, Saudi Arabia - under an worldwide cloud over the murder of journalist Jamal Khashoggi - had pledged to pump more oil to stabilize world markets. Opec also pledged to offset any supply gaps.
"We appreciate that the USA recognized the role which this Port will play to bring strategic and long term benefits to Afghanistan as well as enhance Afghanistan's connectivity with the outside world", the MEA spokesman said.
But other big producers, such as Saudi Arabia, Russia and shale companies in the United States, have increased output steadily, more than compensating for lost Iranian barrels.
Prices of the barrel of the West Texas Intermediate faded the initial spike to the $63.00 neighbourhood in response to news that Saudi Arabia and Russian Federation could be discussing the idea of production cuts next year. Demand is also slowing from emerging markets due to the strength of the dollar.
More US oil will likely come.