Oil slumps two percent on possible return of Iranian supply

Iran’s President Hassan Rouhani said world powers have accepted that significant sanctions on his country will be lifted, but also added that diplomats were still ironing out the ‘details and finer points’.

Oil slumped to the lowest in nearly a month as traders focused on the likelihood of a renewed nuclear deal with Iran and the potential removal of sanctions on the country’s crude exports. Futures fell 2.1% in New York on Thursday, posting a third straight decline in the longest losing streak since March. Iran’s President Hassan Rouhani said world powers have accepted that major sanctions on his country will be lifted. But he said diplomats are still discussing “details and finer points” before there’s “a final agreement.” The prospect of a return of Iranian supply is also being reflected in Brent’s prompt timespread. The spread’s backwardation narrowed to just a few cents, a sign that market tightness may be easing.