Oil prices fell Monday amid oversupply worries after the West clinched a deal with Iran that will see Tehran scale back its disputed nuclear program in exchange for sanctions relief.
New York's main contract West Texas Intermediate (WTI) for February delivery finished the day at $91.80 a barrel, a loss of 92 cents from Friday's close.
Brent North crude for February fell 50 cents to settle at $106.75 a barrel in London trade.
The Iran deal, announced Sunday, will take effect from January 20. It gives Iran and the so-called P5+1 -- Britain, China, France, Russia and the United States plus Germany -- six months to come up with a more comprehensive solution to the nuclear dispute.
The Islamic republic's oil exports have been crippled by a series of international sanctions aimed at bringing an end to its nuclear drive, which the West claims is being used to develop atomic weapons. Iran denies the assertion.
"If an agreement to the nuclear dispute were to be found and the sanctions against Iran were to be lifted completely, up to one million barrels of Iranian oil per day could become available," Commerzbank analysts said in a market note.
"Unless oil production were cut elsewhere, this would give rise to a considerable oversupply on the oil market, which would weigh on prices."
In the United States, WTI was weighed down by concerns about a growing glut of oil at the Cushing, Oklahoma hub, said Andy Lipow of Lipow Oil Associates.
Supplies at Cushing, the US benchmark WTI delivery point, have climbed for several weeks and last week rose by a million barrels.
"We will enter the seasonal maintenance period in a few weeks. That will dampen refiners demand," Lipow said.
Oil prices fell Monday amid oversupply worries after the West clinched a deal with Iran that will see Tehran scale back its disputed nuclear program in exchange for sanctions relief.
New York’s main contract West Texas Intermediate (WTI) for February delivery finished the day at $91.80 a barrel, a loss of 92 cents from Friday’s close.
Brent North crude for February fell 50 cents to settle at $106.75 a barrel in London trade.
The Iran deal, announced Sunday, will take effect from January 20. It gives Iran and the so-called P5+1 — Britain, China, France, Russia and the United States plus Germany — six months to come up with a more comprehensive solution to the nuclear dispute.
The Islamic republic’s oil exports have been crippled by a series of international sanctions aimed at bringing an end to its nuclear drive, which the West claims is being used to develop atomic weapons. Iran denies the assertion.
“If an agreement to the nuclear dispute were to be found and the sanctions against Iran were to be lifted completely, up to one million barrels of Iranian oil per day could become available,” Commerzbank analysts said in a market note.
“Unless oil production were cut elsewhere, this would give rise to a considerable oversupply on the oil market, which would weigh on prices.”
In the United States, WTI was weighed down by concerns about a growing glut of oil at the Cushing, Oklahoma hub, said Andy Lipow of Lipow Oil Associates.
Supplies at Cushing, the US benchmark WTI delivery point, have climbed for several weeks and last week rose by a million barrels.
“We will enter the seasonal maintenance period in a few weeks. That will dampen refiners demand,” Lipow said.
