Oil slides after France and Iran say closer to a nuclear deal

SINGAPORE – Oil slid more than 2% in early Asian trade on Thursday after both France and Iran said parties are closer to an agreement to salvage Iran’s 2015 nuclear deal with world powers, offsetting ongoing concerns over the situation in Ukraine.

U.S. West Texas Intermediate (WTI) crude was trading down $2.50, or 2.7%, at $91.16 a barrel at 0058 GMT, after it ended up 1.7% the previous day.

Brent crude was trading down $2.43, or 2.6%, at $92.38 after the contract closed up 1.6% in the previous day’s trade.

“Positive news from the U.S.-Iran nuclear negotiations is providing much-needed relief to global oil prices, as the possibility of new crude supplies reduces the supply-demand deficit,” said Claudio Galimberti, senior vice president of consultancy Rystad Energy.

France on Wednesday said a decision on salvaging Iran’s 2015 nuclear deal with world powers was just days away and that it was now up to Tehran to make the political choice, while Tehran called on Western powers to be “realistic.”

Oil markets have been dominated in recent weeks by Russia’s threatening posture toward Ukraine, with concerns that supply disruptions from the major producer in a tight global market could push oil prices to $100 a barrel.