US West Texas Intermediate (WTI) crude was down $1.17, or 1.27%, at $91.16 a barrel, after rising as high as $92.73 earlier.
The US government on Friday reinstated a sanctions waiver on Iran to allow international cooperative nuclear projects, as talks on the 2015 international deal enter the final stretch.
Although the sanctions relief will have a limited impact on Iran’s troubled economy, it was seen by markets as a positive sign that both sides are determined to reach a deal. If the United States lifts sanctions on Iran, the country could boost oil shipments, increasing global supply.
“Investors are expecting more twists and turns in the US-Iran talks and no deal coming soon,” said Kazuhiko Saito of Fujitomi Securities Co Ltd.
Commerzbank analyst Carsten Fritsch said: “If oil sanctions were also relaxed, this could help ease the oil market.”
Crude prices, already up nearly 20% so far this year, are likely to top $100 a barrel on strong global demand, according to analysts.
Source: Ambito
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