Brent crude may fall this week as tensions between Iran and the West ease further, raising expectations that the OPEC producer may be close to re-entering the export market.
A pullback in Brent may help narrow the premium with its U.S. counterpart West Texas Intermediate (WTI) crude futures – which currently stands at just under $11 a barrel – to between $5-7/barrel, according to UBS.
In a November deal with the United States, France, Germany, Britain, China and Russia, Iran agreed to suspend its most sensitive nuclear activity in exchange for a limited easing of sanctions that are battering its oil-dependent economy.
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