Update (1245ET): Well that didn’t last long. After oil prices plunged on Iran nuclear deal optimism, they have surged back higher again now after Russian Envoy Ulyanov clarified his earlier remarks, noting that it’s “too early for a breakthrough” in the nuclear talks, noting that “unresolved issues remain.”
Oil prices just plunged following headlines from Vienna that Mikhail Ulyanov, Russia’s envoy to JCPOA talks, says “important news is likely to be released by tomorrow” and “the negotiations have made major progress”, in a statement to BBC Persian correspondent Kasra Naji.
WTI is back near a $63 handle..
And Brent is tumbling after breaching $70 earlier in the day…
The drop in price is likely due to any deal with Iran will 1) remove some mid-East tension premium (though Israel and Palestine are spoiling that, however, indirectly through Iran), and 2) the potential opening up of Iranian oil exports (legally, not illegally to China).
By Zerohedge.com