Oil Prices Decline Amid Talks of Imminent Nuclear Agreement with Iran

Oil prices dropped by about 1% on Thursday after both France and Iran stated that parties are close to reaching a consensus to save the 2015 nuclear agreement with global powers, despite ongoing concerns regarding the situation in Ukraine. U.S. West Texas Intermediate crude fell by $0.74, or 0.70%, to $92.81 per barrel, after earlier losing more than 3% during the session. It had closed with a 1.7% increase in the previous session. Brent crude decreased by $0.85, or 0.9%, to $94.11 after finishing the previous day up by 1.6%. Iranian chief negotiator Ali Bagheri Kani tweeted that efforts to restore the agreement are "closer than ever," although the U.S. State Department remained more reserved. Tehran appears to be taking steps in Asia for its official return to the market, as officials from the state-owned National Iranian Oil Company met with refiners in South Korea. Claudio Galimberti, vice president at the consulting firm Rystad Energy, stated that positive news regarding U.S.-Iran nuclear negotiations provides much-needed relief for global oil prices, as the potential for new crude supplies reduces the supply-demand gap. France indicated on Wednesday that the decision regarding the rescue of the 2015 nuclear agreement with global powers is only days away, and it is now up to Tehran to make the political decision, while Tehran urged Western powers to be "realistic." Crude losses were mitigated following a report from a Russian news agency that Moscow-backed separatists claimed Ukrainian forces violated ceasefire rules overnight. Meanwhile, Russia insisted it is serious about easing tensions and denied plans to invade its smaller neighbor, while the United States claims Moscow continues to bolster troop levels near the border.