Yesterday, the prices of oil declined after BBC reported that an important announcement will be made about the nuclear deal with Iran. If Iran quickly achieves compliance with nuclear standards, then energy markets may see an increase in supply by mid-summer.
According to the BBC, there will be an announcement on Wednesday, when the joint commission of the parties meets for their talks in Vienna. However, three European officials, who declined to be named, denied that there will be major announcements on this matter anytime soon.
Iran and the United States have been holding indirect negotiations in the Austrian capital for two months. The world powers such as China and the European Union must soon reach an agreement in the near future that removes US sanctions on Iran and allows Iran to continue its actions in accordance with the restrictions imposed on its nuclear program by the 2015 agreement.
In response to Trump's punishment, Tehran has significantly expanded its uranium enrichment activities. A nuclear weapon is required to approach the level of uranium purity.
The deadline for signing an interim agreement on inspections between Iran and the IAEA (International Atomic Energy Agency) will be on May 22. Abbas Araghchi, the leading speaker of the Islamic Republic in Vienna, said his country is ready to consider extending the agreement if necessary.
In this case, Iranian President Hassan Rouhani, who is a supporter of the original agreement and currently several months away from office, is under severe pressure from parliament, which is hostile to the nuclear deal. Conservative officials demand that Iran should continue to expand its nuclear activities while there is still no agreement with the United States.
Based on the forecast for the second half of the year, the oil demand should increase, including prices. And only this news about Iran creates the possibility of a decline in oil prices.
