Talks between six world powers and Iran over its nuclear program passed the midnight deadline. The parties decided to continue the negotiations as the deal was not reached. According to the head of the Ministry of Foreign Affairs of Iran, the negotiations led to some results, but the agreement is yet to be hammered out.
On the background of the events, oil prices are still under pressure. Brent declined by 0.5% and traded at 54 dollars 87 cents per barrel.
Fears that the Iranian oil may enter the market in the near future are supported by the news on the rise of quotas of OPEC, possible increase in supply from Libya, and growth of the US oil reserves. According to the data from the American Petroleum Institute, the crude oil reserves exceeded expectations and advanced by 5.2 million barrels. Still there is positive information on the reduction in oil reserves which occurred last week.
Light sweet crude oil lost 0.8% and traded at 47 dollars 22 cents per barrel.
Today, the US Department of Energy will report on crude oil inventories. However, negotiations in Lausanne may have a more significant impact on the market. Experts suppose that average daily supplies from Iran can reach one million barrels, while the supply on the market already exceeds the demand.