Prospect for additional oil from Iran puts oil prices under pressure

The drop in oil prices in recent days was doubtless due in part to the expectation that agreement will finally be reached in the nuclear negotiations with Iran this week. The extended deadline for this ends today. According to Iranian diplomats, agreement has been achieved in four of the five annexes. Time is running out, as US President Obama needs to submit the agreement to Congress by 9 July. 


According to Commerzbank, "We are confident that the unresolved issues will be clarified by then, meaning that there is a good chance of additional oil from Iran reaching the already oversupplied market. We therefore reserve the right to downwardly revise our oil price forecast."