ANKARA
Brent crude oil price fell by four percent Thursday after Iran and the world powers’ group, P5+1, reached a compromise on a framework accord.
The drop raised fears in the market of a possible oil supply increase from Iran.
"Solutions on key parameters of Iran nuclear case reached. Drafting to start immediately, to finish by June 30,” Iranian President Rouhani said via his official Twitter account. Before Rouhani’s tweet, Iranian Foreign minister Javad Zarif also said that a solution had been found by all sides.
German Foreign Minister Frank-Walter Steinmeier also tweeted: “Agreement on framework for final agreement reached.”
Price of the global benchmark, however, immediately dived below the $55 per barrel mark after the leaders' announcements.
Brent crude oil price decreased 4.3 percent to reach $54.27 per barrel at 6.30 p.m. GMT, from $56.75 barrel when it opened Thursday.
The positive result of the talks now may result in softening of sanctions on Iran, which can now possibly start its oil supply in greater amounts to global markets.
Iran reportedly has around 30 million barrels of oil stored offshore, which in theory it could quickly pour into the oversupplied market and put a further downward pressure on oil prices.
An oversupply of oil has been a major factor behind the plummeting prices since June, which fell around 50 percent.
The total amount of oil production worldwide is estimated at around 94.5 million barrels a day.
