Crude oil closes lower as Iran nuclear deal proposal is said to be on the table

Crude oil closed in the red on Tuesday (Aug. 8) after media reports that Iran and its major powers were close to a nuclear agreement. This will allow Iran to resume exporting oil. Investors eye on today’s release of U.S. crude oil inventories.

  • WTI crude futures were down 26 cents, or 0.3%, at $90.50 a barrel.
  • BRENT crude futures were down 34 cents, or 0.4%, at $96.31 a barrel.

Crude oil futures rose early after Russian oil company Transneft said Ukraine suspended Russian oil deliveries to Eastern Europe through the country’s southern pipeline. Ukraine has not received oil transportation fees for nearly a week because of Western sanctions.

Later, crude oil prices fell after foreign media reported that European Union (EU) officials had finalized a draft for the resumption of the 2015 nuclear deal between Iran and world powers.

The EU has submitted the draft proposal to the U.S. and Iran and is expected to make a final decision in the coming weeks. If Iran and the West can reach an agreement, Iran could put its oil back on the world market.

The Commonwealth Bank said that although the details of Iran’s oil export plan are unclear at this point, it is likely that Iran will be able to quickly resume exporting oil in the event of a nuclear agreement.

Exports are expected to increase by 1.0-1.5 million barrels per day over 6 months, which could lead to a decline in oil prices.

Investors are awaiting the EIA’s crude oil inventories report today, while analysts believe that U.S. crude oil inventories fell by only 400,000 barrels last week.

The Spot Market is Open

Wednesday, August 10, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
10.25

90.20

-0.30

-0.33%

Leave a Reply

Change Language
%d bloggers like this: