Oil prices drop 2% on US-Iran nuclear deal hopes, potential increased supply

From Yahoo Finance: 2025-05-14 19:22:00

Oil prices fell on Thursday due to expectations of a U.S.-Iran nuclear deal easing sanctions and increasing global supply. Brent crude settled at $64.53 a barrel, while U.S. West Texas Intermediate crude settled at $61.62. President Trump mentioned progress in negotiations, with Iran willing to agree to a deal in exchange for lifting sanctions.

The potential deal could release an additional 0.8 million barrels per day of Iranian crude onto the market, impacting prices negatively. U.S. sanctions targeted Iranian missile components manufacturing, following previous sanctions on companies sending Iranian oil to China. Talks in Oman addressed disputes over Iran’s nuclear program.

Russian President Putin declined a meeting with Ukrainian President Zelenskiy in Turkey, impacting peace prospects. Zelenskiy criticized Putin’s decision, suggesting a lack of seriousness in ending the war. The International Energy Agency raised its oil demand growth forecast for 2025 to 740,000 bpd due to economic growth and lower oil prices supporting consumption.

OPEC+ has been increasing supply, while OPEC trimmed its forecast for oil supply growth from the U.S. and other producers outside the group. U.S. Energy Information Administration data showed a 3.5 million-barrel increase in crude stockpiles last week. Black Sea CPC Blend crude oil exports are expected to reach 1.6-1.7 million bpd in June, higher than May’s export levels.



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