Oil retreats on chance of Iran supply boost

Reuters

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    MELBOURNE, Aug 9 (Reuters) - Oil prices dipped in early
trade on Tuesday on the latest progress in last-ditch talks to
revive the 2015 Iran nuclear accord, which would clear the way
to boost its crude exports in a tight market.
    Brent crude  LCOc1  futures fell 27 cents, or 0.3%, to
$96.38 a barrel at 0027 GMT, paring a 1.8% gain from the
previous session.
    U.S. West Texas Intermediate (WTI) crude  CLc1  futures
declined 24 cents, or 0.3%, to $90.52 a barrel, after climbing
2% in the previous session.
    "The spectre of a U.S.-Iran nuclear deal continues to hover
over the market," ANZ Research analysts said in a note.
    The European Union late on Monday put forward a "final" text
to revive the 2015 Iran nuclear deal, awaiting approvals from
Washington and Tehran. A senior EU official said a final
decision on the proposal was expected within "very, very few
weeks".  urn:newsml:reuters.com:*:nL1N2ZK12G
    "While the details around the timing of the resumption of
Iran's oil exports remain uncertain even if the accord is
revived, there is certainly scope for Iran to increase oil
exports relatively quickly," Commonwealth Bank analyst Vivek
Dhar said in a note.
    He said Iran could boost its oil exports by 1 million-1.5
million barrels per day, or up to 1.5% of global supply, in six
months.
    "A revival of the 2015 nuclear accord will likely see oil
prices fall sharply given that markets probably don't believe a
deal will be reached," Dhar said.
    However, signs that demand may not be dented as much as
feared are keeping a floor under the market for now, following
stronger-than-expected trade data from China on the weekend and
the surprising acceleration in U.S. jobs growth in July.
    Traders will be watching out for weekly U.S. oil inventory
data, first from the American Petroleum Institute on Tuesday and
then the Energy Information Administration on Wednesday.
    Five analysts polled by Reuters expect crude stockpiles fell
by around 400,000 barrels and gasoline stockpiles declined also
by about 400,000 barrels in the week to Aug. 5, while distillate
inventories, which include diesel and jet fuel, were unchanged.
 urn:newsml:reuters.com:*:nL4N2ZK36F
    

 (Reporting by Sonali Paul
Editing by Shri Navaratnam)
 ((Sonali.Paul@thomsonreuters.com; +61 407 119 523))

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