Potential US-Iran deal continues to pressure oil prices

Oil prices remain under pressure on Friday amid prospects of a potential US-Iran deal. The agreement could worsen the already expected crude oversupply by year-end, Bloomberg reports.

Brent is hovering around $64.60 per barrel after sliding over 2% the previous day. Meanwhile, WTI is trading near $61.2.

The International Energy Agency (IEA) said on Thursday that the return of previously cut production by OPEC+, along with an increase in new supplies, will push the global oil market into surplus. The organization projects that crude supply will start outpacing demand later this year, with the glut expected to worsen in 2025.

Westpac’s Robert Rennie suggests any potential deal between Washington and Tehran would have only a limited impact on Iranian supplies. The likely export increase would amount to just 200,000–300,000 barrels per day, which isn’t enormous. Westpac maintains its short-term Brent crude price forecast at $60–65 per barrel.