Oil prices dropped Monday as Iran and global powers appeared
close to a historic deal that would loosen sanctions in exchange for curbs on
Tehran's nuclear program.
Sanctions have long reined in Iran's oil production and
exports, and the country is eager to shed those restrictions to boost its
all-important energy sector.
Crude prices dropped by 1.6% to around $52 a barrel as
investors reacted to
the potential new supply.
Iran has plenty of oil it can export the minute a deal is
signed -- there are an estimated 30 million barrels of crude in storage,
according to FACTS Global Energy, an industry consultancy. An agreement could
also pave the way for new foreign investment by international oil and gas
giants like Royal Dutch Shell and France's Total. (s:cnn)
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