Iranian Agreement Prospects Bring Oil Prices Down
The speculations about the impending successful negotiations between Iran and the six world powers brought down the oil features on Wednesday. The agreement would allow more crude oil from Iran to reach the world markets.
The Iranian nuclear program talks have been extended, in order to reach an agreement between the official Tehran and the officials of the six world powers. The deadline was set at Tuesday, but was later pushed back. Lifting the sanctions from United Nations seems to be the segment holding back the solution. The negotiations will continue on Wednesday, in Lausanne, Switzerland, in an attempt to reach a framework deal.
Sergei Lavrov, the Minister of Foreign Affairs of the Russian Federation stated that the deal is close, since all the crucial aspect have been agreed. Later, an anonymous diplomat rebutted Lavrov’s statement, saying that the deal has not been struck.
The negotiations have been halted, since the United States of America threated to leave the negotiations, and the official Tehran repeated that Iran has “nuclear rights”. The potential agreement is predicted to be partial and fragile, even if it was reached.
Harry Tchilinguirian head market strategist at BNP Paribas, said that no matter how the negotiations go, “we do not expect a flood of oil into the market as a consequence.” “Which sanctions will be lifted and the uncertainty in the timing of lifting suggest that Iran will not be in position to significantly add to the current oversupply in the market,” Tchilinguirian added.
The increased supply of the market from the OPEC producers added pressure on the oil prices, as production in March reached the highest rate since October 2014. Iraq again went back to the pre-bad-weather rates, and Saudi Arabia is producing oil seriously close to the all-time record high rates.