Oil Prices Take a Dive Following Iran Deal

Success at the negotiating table in Geneva sends oil prices into retreat

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Denis Balibouse / Reuters

U.S. Secretary of State John Kerry (R) shakes hands with Iranian Foreign Minister Mohammad Javad Zarif after a ceremony at the United Nations in Geneva Nov. 24, 2013.

Oil prices tumbled and stocks rallied on Asia bourses on Monday following the signing of a historic agreement between Tehran and six world powers that will bridle Iran’s nuclear program.

While Sunday’s deal in Geneva will ease some of the devastating sanctions levied against Iran, the fine print fell short of allowing the country to increase its sale of crude globally. Regardless, markets responded kindly to the agreement with Brent crude oil falling $2.89 to $108.16 a barrel, according to Reuters.

“Right now we are taking some geopolitical risk out of the Brent market, that should be expected and we could see some loosening of Brent supplies going forward as a result of this interim deal,” Jim Ritterbusch, president of oil-trading advisory firm Ritterbusch & Associates, told the Wall Street Journal.