Oil Prices Fall, Shares Rise in Wake of Iran Nuclear Deal
The possibility of a future deal that would allow Iran to restore full production will keep prices lower in the shorter-term, analysts believe.
“It has implications for OPEC and probably also for the U.S. as well,” Jonathan Barratt, chief executive officer of Sydney-based commodity research firm Barratt’s Bulletin, told CNBC Asia’s Squawk Box on Monday.
“Oil will continue to trade lower for some time… the Middle Eastern premium is eroding quite fast,” he added.
The FTSEurofirst 300 share index climbed toward a recent five-year high and Germany’s DAX set a new record Monday as traders welcomed the prospect of greater stability, Reuters reported.
“The Iran deal reduces the medium term global geopolitical risk,” Didier Duret, chief investment officer at ABN-AMRO Private Banking, told Reuters.
The newfound cooperation between Iran and the West eases tensions that pushed oil prices higher in recent years.
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