Oil prices dip in anticipation of supply glut on nuclear deal with Tehran

14-Jul-15

Brent futures (LCOc1) dipped to US$57.8 a barrel while US crude futures (CLc1) dipped to US$52.2. Oil fell by over 1% on Monday on hopes of possible conclusion of nuclear deal with Tehran that could bring millions of additional barrels of crude into an oversupplied market, as per Reuters. Iran and world powers seem ready to announce a nuclear deal that could lift Western sanctions on Iranian oil exports. Sanctions have slashed Iran's crude exports to under 1 mln bpd, down from 3 mln bpd in 2011. The global petroleum market already has a 2.6 million bpd surplus.