Oil prices take a dive on report that US and Iran near interim nuclear deal
There is a report that the US and Iran are near an interim deal on nuclear enrichment and oil exports, according to the Middle East Eye, citing a source from Iran. Talks have taken place between US Iran negotiator Robert Malley and Iran's ambassador to the US but it's not clear if senior officials back the deal.The report has to heavy selling in oil.From the report:Iran and the United States are nearing a temporary deal that would swap some sanctions relief for reducing Iranian uranium enrichment activities, two sources with direct knowledge of the talks told Middle East Eye. According to an Iranian official and a person close to negotiations, the talks have taken place directly on US soil, marking a notable development in the diplomatic process. However, there is still reluctance on the US side to rejoin the 2015 nuclear deal known as the JCPOA, they said.The two sides have reached an agreement on a temporary deal to take to their superiors, the report says. It would allow Iran to export up to 1 million barrels per day and gain access to frozen funds abroad.It notes that historically, Iranian leaders have been opposed to interim deals.Saudi Arabia is set to reduce output by 1 mbpd in July and US SPR sales will end in June but the market is only concerned about far more oil returning to market from Iran. With that, brent crude has sunk $3 lower and through $74 after reaching $77.68 earlier today.Adding to the drop are economic worries as US initial jobless claims jumped to the highest since 2021 today. Germany also reported a second consecutive quarter of negative growth, marking a technical recession. Pioneer Natural Resources VP Beth McDonald is one the wires today talking about limited US supply growth in shale because companies are feeling a squeeze on margins and returning cash to shareholders. They will be facing an even deeper squeeze if oil falls below $65.Update: Israel's Haaretz also reports on the potential for a deal 'within weeks'. This article was written by Adam Button at www.forexlive.com.
There is a report that the US and Iran are near an interim deal on nuclear enrichment and oil exports, according to the Middle East Eye, citing a source from Iran. Talks have taken place between US Iran negotiator Robert Malley and Iran's ambassador to the US but it's not clear if senior officials back the deal.
The report has to heavy selling in oil.
From the report:
Iran and the United States are nearing a temporary deal that would swap some sanctions relief for reducing Iranian uranium enrichment activities, two sources with direct knowledge of the talks told Middle East Eye. According to an Iranian official and a person close to negotiations, the talks have taken place directly on US soil, marking a notable development in the diplomatic process. However, there is still reluctance on the US side to rejoin the 2015 nuclear deal known as the JCPOA, they said.
The two sides have reached an agreement on a temporary deal to take to their superiors, the report says. It would allow Iran to export up to 1 million barrels per day and gain access to frozen funds abroad.
It notes that historically, Iranian leaders have been opposed to interim deals.
Saudi Arabia is set to reduce output by 1 mbpd in July and US SPR sales will end in June but the market is only concerned about far more oil returning to market from Iran. With that, brent crude has sunk $3 lower and through $74 after reaching $77.68 earlier today.
Adding to the drop are economic worries as US initial jobless claims jumped to the highest since 2021 today. Germany also reported a second consecutive quarter of negative growth, marking a technical recession.
Pioneer Natural Resources VP Beth McDonald is one the wires today talking about limited US supply growth in shale because companies are feeling a squeeze on margins and returning cash to shareholders. They will be facing an even deeper squeeze if oil falls below $65.
Update: Israel's Haaretz also reports on the potential for a deal 'within weeks'.
This article was written by Adam Button at www.forexlive.com.
