BANGKOK–Oil prices sank Monday as a nuclear deal between Iran and six world powers made it more likely that the sanctions choking Iranian oil exports will eventually be lifted.
Brent crude, a benchmark for international oils, was down US$2.53 at US$108.52 a barrel at midafternoon Bangkok time in electronic trading on the ICE futures exchange in London. Benchmark U.S. crude fell US$1.54 to US$93.30 on the New York Mercantile Exchange.
After marathon negotiations in Geneva, Iran on Sunday reached an agreement with the U.S., Britain, France, Russia, China and Germany.
Iran got limited relief from sanctions that have hobbled its economy, but an embargo on its oil exports remains in place while negotiations continue for a more enduring deal to ensure the country only uses nuclear technology for peaceful purposes such as power generation.
If Iranian oil returns to international markets, the additional supply is likely to make crude less expensive.
Benchmark U.S. crude is down from about US$110 in October because of ample supplies and muted demand.
In other energy futures trading on Nymex:
— Wholesale gasoline dropped 5.5 cents to US$2.656 gallon.
— Heating oil shed 5.4 cents to US$2.985 a gallon.
— Natural gas added 6.2 cents to US$3.83 per 1,000 cubic feet.