🛢Oil plunges 5% off daily highs!

Reza Zandi, a well-known reporter following Middle East oil markets, wrote on Twitter that the Iran nuclear deal has been agreed on and is expected to be signed within the next 72 hours. Agreement will be signed in Vienna, where talks were held. Zandi said that even if 72-hour deadline is not precisely met, agreement was reached and deal will be signed.

Oil prices experienced a big reversal following the news. Daily gains were erased and crude turned negative. Brent dropped around 5% off daily highs. Return of Iranian crude to markets may help alleviate current pressure as it would amount to 0.5-1.5 of additional exports. China is said to have bought as much as 700k bpd of Iranian production last month in order to take advantage of lower prices, showing that Iran is ready to supply markets with commodity.

Oil prices took a big hit on Iran deal news but continue to trade at elevated levels. Source: xStation5