Oil market eagerly waits for conclusion of Iran-US talks

 As per some reports in the media, Iran and the United States might be moving closer to closing the nuclear deal once and for all and as things progress, this deal may have a significant impact on the oil market. 

With the signing of the deal, they will establish a bilateral bond which will, in turn, result in lowering the oil prices, said trade experts. This is a crucial turnaround of events as the US and Brent crude reached an all-time high eight years. 

As per an agreement reached in Vienna related to the nuclear talks, in order to revive the 2015 nuclear agreement (JCPOA) with Iran, when the US will lift sanctions off the Arab nation, there will be a possible boost on the oil shipments. 

This would approximately add one million barrels in a day to the global supply which is huge given the current usage and margin. 

The claim was further stressed by John Kilduff, partner at Again Capital LLC in New York who said, “There has been speculation that this rally was going to encourage some sanctions relief and get more Iranian oil on the market.”

The market has seen a rapid rise in oil prices in the past few months. The current price scenario is such that the prices have neared the $100 pb threshold which was not seen since November 2014.

The talks seemed to be on a positive note as on Friday, the Biden administration restored sanction waivers which allowed international nuclear cooperation with Iran especially on the initiatives or projects designed to make it harder for the Iranian nuclear sites to function.