Crude Faces Sell-Off on Potential 1mn bpd Iran/US Deal

The Middle East Eye reported earlier about a potential US and Iran near interim deal ‘on nuclear enrichment and oil exports’ that has caused a sell off in crude markets.

• Under the terms of the deal, Iran would commit to ceasing its 60 percent-and-beyond uranium enrichment activities and would continue its cooperation with the International Atomic Energy Agency (IAEA) for the monitoring and verification of its nuclear programme.
• In exchange, the sources said, Tehran would be allowed to export up to a million barrels of oil per day and gain access to its income and other frozen funds abroad.
• Markets took a while to react to the headlines before facing a strong sell-off.
• The potential release of up to one million barrels per day would counteract Saudi’s commitment at the start of the week to cut its supply by the same amount as part of the latest OPEC+ deal – something that provided narrow upward sentiment to markets this week.
• Brent AUG 23 down -4.3% at 73.66$/bbl
• WTI JUL 23 down -4.7% at 69.14$/bbl