Market Overview

Oil Moves Lower Amid Iran Nuclear Deal

Oil Moves Lower Amid Iran Nuclear Deal

Oil prices have moved sharply lower in July as the U.S.-Iran nuclear negotiations drew to a close. The United States Oil Fund LP (NYSE: USO) has lost nearly 12 percent since July 1 as West Texas Intermediate Crude Oil futures fell from above $58 to $52.

On Tuesday, prices are slightly lower as an official deal was announced, with traders expecting the eased sanctions to result in more Iranian oil brought to the international market. According to reports, it could still take a couple of years for Iran to impact supply substantially as the country makes much-needed investments in infrastructure.

See Also: World Powers Agree On Iran Nuclear Deal: Now What?

Earlier Tuesday morning, President Barack Obama announced the deal and said that he would veto any measure by the U.S. Congress to block the deal.

"As Congress and the American people review this deal, it will be important to consider the alternative," President Obama added. "Without this deal, there is no scenario where the world joins us in sanctioning Iran until it completely dismantles its nuclear program."

If the U.S. Congress does not approve of the deal, it would take two-thirds votes in each chamber to override a Presidential veto. That seems unlikely, experts say.

Year-to-date, the United States Oil Fund has seen declines in excess of 14 percent, though prices still trade 11 percent above the 52-week low of $15.61. Within the past year, the USO lost 53 percent.


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Posted-In: Iran Oil President Obama West Texas IntermediateNews Commodities Global Markets Best of Benzinga

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