Reopening of Libyan oil terminal to bring additional oil to an oversupplied market

Given that the oil market is already oversupplied, an easing of sanctions delayed by up to one month should not pose any problem. Those market participants who have been betting on a rapid Iranian return to the oil market are now likely to square their positions, which should lend short-term support to prices though they are unlikely to make any sizeable leaps. 

After all, the reopening of a major oil terminal in Libya will probably see additional oil reaching the market from Libya in the next few days, further increasing the oversupply, says Commerzbank.