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Crude oil is sliding

Akin Oyedele   

Crude oil is sliding
Stock Market1 min read

Crude oil is sliding on Tuesday morning.

Near 6:50 a.m. in New York, West Texas Intermediate crude oil futures were down more than 2%, and fell to as low as $50.90 per barrel overnight.

Brent crude, the international benchmark, slipped nearly 2% to as low as $56.76 per barrel.

The big news overnight was the nuclear deal agreement between Iran and several world powers - a development that oil watchers have been following closely because of what it may mean for the market.

The deal would primarily see Iran scale back its nuclear program in exchange for a lifting of international sanctions.

But what it means for oil prices is that Iran could start increasing its exports, adding to an already oversupplied market. Iranian Oil Minister Bijan Namdar Zanganeh estimates that Iran could send out up to 500,000 barrels a day, according to Bloomberg, but Goldman Sachs estimates it could take up to a year before output reaches this level.

On Monday, the 12-member cartel OPEC's monthly report showed that Saudi Arabia pumped a record amount of oil last month.

Here's a chart showing the slide in WTI overnight on Tuesday:

fut_chart_edited 1

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