According to a report from the Wall Street Journal "crude-oil futures were trading somewhat lower Monday, after further cementation of a deal that could return some Iranian crude to the market and with weaker U.S. economic data and prospective Federal Reserve tapering of economic stimulus both on the agenda''.
"Iran and six major powers reached an agreement over the weekend, which means a deal reached in November to curb Tehran's nuclear program will come into force Jan. 20. Next Monday will therefore mark the start of a six to 12-month period in which the conditions for a final nuclear agreement must be fulfilled''.
"In November Iran committed itself to eliminate its stocks of 20% enriched uranium within six months and limit the enrichment of uranium to 5%, explained JBC Energy in a note to clients. In return, Iran gets "an easing of sanctions that will give the country access to a reported $4.2 billion in oil revenues, realized in monthly installments," JBC said.
If Iranian crude flows back into the market in the coming months the excess supplies could mean a weaker price.
