Oil prices are highly volatile on news of negotiations with Iran

On Thursday, the price of oil accelerated its decline amid expectations that the United States and Iran will soon be able to return to a nuclear deal that will allow Iranian oil to come back to the world market. 

April Brent futures declined during the day to the level of $91.40 per barrel, recovering later to $93.35. WTI crude oil fell to $90.30, also recovering during the day to $93.15 per barrel. 

Yesterday it became known that the parties in the negotiations on the nuclear program are «closer to an agreement than ever.» This was stated by the chief negotiator from Tehran, Ali Bagheri Kani, on Twitter.

In addition, Iran and South Korea held a meeting of representatives of oil refining companies to discuss possible supplies, which suggests that Iran is definitely preparing the ground for a return to the market.

Experts note that the positive dynamics of negotiations between the United States and Iran somewhat calms the oil market. And although there is no agreement yet, prices are declining on the news of progress in negotiations and expectations of a potential return to the oil market in the amount of up to 900 thousand barrels per day by December.

At the same time, today oil prices are supported by another increase in geopolitical tensions due to the situation on the Ukrainian border. The White House said yesterday that Russia had increased the concentration of troops on the border by an additional 7 thousand people.