The prospect of a new nuclear deal between the US and Iran, and therefore the possibility of a re-entry of the latter into the global oil market, sends oil prices down, writes Reuters.

A barrel of European reference crude Brent costs USD 92.40 Friday morning against USD 92.33 Thursday afternoon. A barrel of WTI trades concurrently at USD 91.02 against USD 91.00 Thursday afternoon.

The conflict in the Russian-Ukrainian borderland and worries of a Russian invasion have set in, affecting global markets and the oil market especially, with the geopolitical tensions having stoked underlying fears of a far-reaching breakdown in global oil supplies.

However, the expectations of a new nuclear deal between the US and Iran instill hope in the oil market and offset the crisis in Eastern Europe. A number of diplomats involved in arranging a new deal say that the ongoing negotiations also mention oil sanctions against Iran being lifted.

”The downward pressure on crude from the prospect of a deal is likely to sustain ... unless the parties end the latest round of talks still in a deadlock,” says founder of market research firm Vanda Insights Vandana Hari.

No specific figures have emerged regarding a boost of oil supplies in the event of an Iranian re-entry, but lifting the sanctions is projected to result in an increase of approximately 1 million barrels a day.

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