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.