Oil falls after Iran deal


A six-month deal to curtail Iran's nuclear ambitions is enough to send oil futures sliding 0.85% in Monday's early electronic trading. The easing of geopolitical tensions is usually a good excuse to pare bullish bets on crude.

Although the deal doesn't officially ease restrictions on crude oil sales, it does represent progress and some believe the agreement may be a precursor to the eventual resumption of exports.

"We can ... expect some price weakness as the market adjusts to the future prospect that Iranian exports will resume,” one Societe Generale strategist tells Bloomberg.

For more on the deal, see here.

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Comments (3)
  • PalmDesertRat
    , contributor
    Comments (3792) | Send Message
     
    A decline of 0.85% doesn't sound like "sliding" it sounds to me like the market doesn't believe the Iran deal will work.
    24 Nov 2013, 10:28 PM Reply Like
  • machiavelli
    , contributor
    Comments (723) | Send Message
     
    The Iran deal has very little effect on global production and supply... oil will never get under $80 again.
    24 Nov 2013, 11:35 PM Reply Like
  • bbro
    , contributor
    Comments (11227) | Send Message
     
    Under the deal....

     

    “Iran will be held to approximately 1 million bpd [barrels per day] in sales.”

     

    but not to long ago...

     

    "In early 2012, Iran was exporting about 2.5 million barrels a day."

     

    and

     

    "National Iranian Oil Co.had stored 37 million barrels on tankers awaiting customers."
    25 Nov 2013, 01:04 AM Reply Like
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