Crude stalls as Iran deal fades, focus on fundamentals
Crude flattened on Tuesday, as investors concluded that a deal between Iran and world powers would bring no immediate increase in crude supplies and Libyan oil workers went on strike in Benghazi.
Brent outperformed U.S. crude oil, or West Texas Intermediate (WTI), for most of the session, pushing the spread between the two benchmarks to an 8-month high.
Front-month Brent crude was little changed near $111 a barrel. It plunged as much as $3 on Monday but recouped most of those losses to end 5 cents down. U.S. oil fell 41 cents to $93.68, for much of the session hovering between the 10-and-15-day moving averages of $93.96 and $94.09, respectively.
The nuclear deal, reached in Geneva on Sunday, halts Iran's most sensitive nuclear activity and suspends some sanctions by the West, but caps Iran's exports at the current level of about 1 million barrels per day (bpd).
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