Oil prices dropped Tuesday as signs of progress on the Iran nuclear talks raised hopes for a big supply boost. Brent crude fell as much as 2.8% to hit a six-month low, and US oil dropped back below $90 a barrel. Analysts have estimated Iran could add 1 million barrels a day of production within a few months of sanctions being eased. Loading Something is loading.
Oil prices dropped Tuesday amid signs that talks to revive the Iran nuclear deal yielded some progress, raising hopes for an influx of more crude supply.
Tehran’s response to the European Union’s last-ditch effort to reinstate the deal was viewed positively by EU officials, sources told Bloomberg.
Brent crude fell as much as 2.8% to hit a six-month low, and US oil dropped back below $90 a barrel. By midday Tuesday, Brent crude was down 2.5% at $92.75, and West Texas Intermediate was off 2.65% at $87.03
Under a deal negotiated during the Obama administration, Tehran agreed to freeze its nuclear program in exchange for relief on sanctions, which allowed Iranian crude back on global oil markets.
But President Trump pulled the US out of the deal in 2018. Since Joe Biden’s election, other parties to the agreement have been looking for ways to revive it.
An oil boost from Iran would provide relief for a global economy facing an energy crunch. Iran holds about 100 million barrels of oil in storage, and energy analysts have estimated the country could add about 1 million barrels a day of production within a few months of sanctions being eased.