A deal to ease Western sanctions could hit an already-glutted global oil market.
Iran, the U.S. and its allies are pushing ahead with talks over a nuclear deal that would change many things—perhaps none faster than the price of oil.
Iranian exports in recent years have been essentially capped by Western sanctions aimed at pressuring Tehran over its nuclear ambitions. A deal easing those sanctions could eventually translate into half a million barrels or more a day in Iranian crude heading into a currently glutted global market, analysts estimate.
With global crude prices already under pressure, a deal could quickly knock them lower. U.S. oil prices slumped to a six-year low Monday on fresh signs that supplies are swamping the market.
WNU Editor: If speculation that an Iranian nuclear deal will collapse oil prices is true ... it will then explain why speculators have driven oil prices down to their lowest numbers in 6 years .... Oil plunges to a 6-year low. Is $30 a barrel next? (CNN).
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