ENERGY: Crude prices under pressure as Iran talks near end

There was pressure on oil prices as crude continued to fall on Tuesday with news that Iran and the world powers were picking up pace on their nuclear talks, a development that could ease sanctions on Tehran and would allow more exports from OPEC-member Iran.

News reports suggested that the six world powers – the U.S., U.K., France, Germany, Russia and China – were just 24 hours away from reaching a deal that would allow better monitoring of Iran’s nuclear output capabilities, which Tehran insists are for peaceful and energy-generating purposes.
The preliminary deal is seen a first step towards a comprehensive agreement to be concluded in June that would stop Iran from building a nuclear bomb, especially as it is seen as supporting rogue state and leaders, such as Syrian President Assad and Houthi rebels in Yemen.
"Iran has built up significant oil inventories and could immediately increase exports if sanctions are lifted," analysts at ANZ were quoted by Reuters as saying, with shipping sources suggesting Iran has stored at least 30 mln barrels of oil on its fleet of supertankers.
Brent crude was 35 cents lower at $55.94 a barrel in early trading on Tuesday, while the benchmark US crude WTI was down 56 cents at $48.12 a barrel.
Iran could increase oil production by some 500,000 barrels per day in three to six months if sanctions are removed, and by an additional 700,000 bpd within another year, according to estimates by Facts Global Energy.