Oil prices fell on Monday as officials from Iran and six world powers discussed a possible deal over Tehran’s nuclear programme that could bring an end to sanctions and allow an increase in Iranian oil exports.
The two sides have until the end of Tuesday to come up with an agreement at talks in Lausanne, Switzerland.
Officials close to the talks have said progress has been made and many investors believe a deal is in the making. Few expect the talks to end without some sort of agreement.
“Regarding Iran, there are two possible outcomes: a framework deal or an extended deadline,” Bjarne Schieldrop, chief commodities analyst at SEB Markets in Oslo, told the Reuters Global Oil Forum.
Brent crude was down 40 cents at $56.01 a barrel by 0938 GMT as the market began to price in a deal with Iran. U.S. crude was down 80 cents at $48.07.
Oil markets are well supplied and recent figures show global production outstripping demand by around 1.5 million barrels per day (bpd), filling oil inventories.
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