Brent crude was again lower on Tuesday, the final day of the Iranian talks, as trader prepare for an apparently likely increase in exports from the country.
A deal could see export sanctions lifted, if Iran ends its nuclear programme.
Russia, one of the six ‘world powers’ participating in the negotiations has said the chance of success was high, but, western diplomats are reportedly less bullish.
The oil market is making up its own mind up, with Brent crude falling 1.7% to trade at 55.30 while West Texas Intermediary crude was 0.75% lower at US$48.30.
There is currently between 1.5 and 2 mln barrels too many supplied into the market each day, yet Iran could in relatively short order add about 1mln bopd, and as much as 4mlm bopd in the medium term.
Iran boasts around 9% of the world’s crude, but it has for some time been shunned by international buyers.
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