Oil Prices Fall As Iran Negotiator Says Deal Is “Closer Than Ever”

Iran and the United States may approach an agreement, which will limit the potential to increase oil and may even cause prices to fall.

New optimism for nuclear agreements that will see sanctions A.S. Appointed from Iran came up with a tweet from the country’s main negotiator, Ali Bagherdi Kani.

“After a few weeks after intensive talks, we were closer than before. Nothing agreed until all agreed. Our negotiation partners must be realistic, avoiding intransigencies and heeding lessons from the last 4 years. It’s time for their serious decision,” Bagherdi Kani Tweet on Wednesday .

Oil prices immediately come down following the tweet – and the media reports to quote it – indicates what effect of the agreement if it must be contacted. At the time of writing, Brent Crude and Intermediate West Texas were still traded lower, with Brent dip under $ 93 per barrel and WTI at $ 91.77 per barrel.

Iran has prepared for the return of crude oil to the international market. The country last year announced the planned ramp-up production, and this week, the media reported that officials from the state-owned Indonesian Oil Company have visited South Korea to discuss supply offers by local refinery.

If an agreement is reached on the Iranian nuclear program, the country can add 500,000 barrels per day to provide global oil supplies between April and May, Citi analysts. According to analyst at Rystad Energy Louise Dickson, Iran can increase production very quickly, within four to six months, and also has a large number of oil in storage to be offered on the international market if sanctions are lifted.

However, if negotiations fail, the oil will jump higher, it might hit $ 100 because the demand growth continues beyond production, encouraging an international energy body to call OPEC + earlier this month to do more to increase production.