Oil price falls to $95 a barrel over plans to restore Iran nuclear deal

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From Abubakar Yunusa, Abuja 

 

Oil prices plunged on Tuesday amid a considerable progression in restoring Iran’s 2015 nuclear deal with world powers. 

Brent crude futures, the global oil benchmark, fell $1.3 percent to $95.31 a barrel.  

US West Texas Intermediate, on the other hand, fell $1.2 percent to $89.51. 

The agreement is expected to clear the way for Iran to boost its crude exports in a tight market.

The Iran nuclear agreement, formally known as the joint comprehensive plan of action (JCPOA), is a landmark accord reached between Iran and a group of world powers known as the P5+1 – the US, UK, France, China, Russia and Germany, in July 2015. 

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Under its terms, Iran agreed to limit its nuclear activities and open its facilities to more extensive international inspections in return for the relaxing of economic sanctions. 

In 2018, Donald Trump, former US president, pulled out of the nuclear agreement but recently efforts were renewed to restore the deal.

On Monday, the European Union put forward a “final” text to revive the deal. 

“What can be negotiated has been negotiated, and it’s now in a final text,” Josep Borrell, the bloc’s foreign policy chief, said in a tweet on Monday after the talks concluded and negotiators headed back to their nations’ capitals for consultations.

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“I’m not sure traders are particularly hopeful considering how long it’s taken to get to this point and with there still reportedly being points of contention,” Craig Erlam of brokerage OANDA told Reuters. 

In Nigeria, an embattled oil sector has continued to experience dwindled crude oil production, which steadily dropped in July to an average of 1.08 million barrels per day (bpd).

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