Three reasons oil is down sharply to start the week

WTI crude oil down $1.24, or 3.3%, to $36.85

1) Iran reaffirmed its commitment to pump

Iran said boosting oil exports to pre-sanctions levels is a 'priority', according to oil minister Bijan Namdar Zanganeh. Sanctions are set to be removed in the first week of January and 500K barrels per day will immediately be added with another 500K expected within 6 months.

2) Chinese debt

The Chinese government revealed it will set 'reasonable' limits on local debt in 2016 and in the future. Finance Minister Lou Jiwei made the comments at a conference in Beijing. Local debt has fuelled much of the infrastructure spending in China.

3) Chinese profits and stocks

The Shanghai Composite fell 2.6% in the worst day in a month. The curbs in local debt were part of the reason but so was a move by China's banking regulator to 'cleanse' the online lending market. Some of the margin lending that boosted Chinese stocks last year came online. Weekend data also showed soft industrial profits and the Shanghai Composite fell 2.6%.