Nuclear negotiations with Iran about to end with an agreement

The ongoing oversupply of oil is weighing on prices, as is the prospect that this oversupply may not be reduced in the coming months after all, as had previously been anticipated. 

This is because OPEC is currently producing more oil than at any time in the last three years. Stocks in the US have risen again for the first time in nine weeks, and drilling for oil has been stepped up again for the first time in more than half a year. 

If agreement were to be reached tomorrow in the nuclear negotiations with Iran, additional crude oil could reach the market from Iran in the second half of the year. Therefore further downside potential for oil prices is seen this week, says Commerzbank.