Oil to take further beating as IAEA’s report paves way for removal of Iran’s sanctions

By FXStreet FXStreet (Mumbai) – The IAEA following a meeting in Vienna today will likely publish its report confirming that Iran has curtailed its nuclear program as agreed with world powers. The Fars news agency reported that Deputy Foreign Minister Abbas Araqchi has said “The IAEA will issue its final report on Friday to confirm Iran has met its commitments under the JCPOA”. This report that will pave way for the western sanctions being removed, spells more bad news for the oil market which already under pressure to fight global glut. Oil fell below $30 per barrel today for the second time this week.

Brent crude fell more than 4.5% to $29.46 while US WTI fell to $29.47. Crude oil had collapsed by more than 65% to a 12-year low on Tuesday as well.

Iran has the fourth largest proven oil reserves in the world and once it begins pumping it will add to the existent 1 million barrels a day of over supply which has caused oil prices to drop more than 70 since the middle of 2014. Commerzbank analysts noted “With sanctions on Iran likely to be lifted, more oil is flooding the markets.” Global crude production is estimated to have …read more

Source:: FX Street