Crude oil futures closed lower on Thursday (March 3) on signs of progress in negotiations on the Iran nuclear deal. This could allow Iran to resume exporting oil to the world market.
- WTI crude futures were down $2.93, or 2.6%, at $107.67 a barrel.
- BRENT crude futures were down $2.47, or 2.2%, at $110.46 a barrel.
The International Atomic Energy Agency (IAEA) announced that IAEA Director Rafael Mariano Grossi will travel to Iran on Saturday. This will be a sign of progress in negotiations on the nuclear agreement with Iran.
Iranian Oil Minister Javad Owji expects Iran to fully realize its oil potential less than two months after reaching a nuclear agreement with the West.
“As soon as nuclear negotiations in Vienna are concluded, we can reach our maximum oil production capacity in less than one or two months,”Javad Owji
Iran has the world’s fourth-largest oil reserves, but Iranian oil production has plummeted since the United States imposed sanctions in 2018.
Negotiations on the Iran nuclear deal have been ongoing for 10 months, and diplomats believe that the final stage of the talks has now been reached.
Iran’s Nournews news agency reported, “If Mr. Grossi’s arrival allows the IAEA and Iran to develop roadmaps for Iranian defense, it will help the negotiations in Vienna.”
In the meantime, the invasion of Ukraine enters its second week and there is still no diplomatic agreement between the two countries in sight.
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Friday, March 4, 2022