— This is the script of CNBC's news report for China's CCTV on March 30, Monday.
Welcome to CNBC Business Daily, I'm Qian Chen.
Talks over Iran's nuclear program between Iran and the P-6-the five permanent members of the United Nations Security Council plus Germany continue to weigh on the oil market.
By Tuesday, once a deal is reached, it could add oil to an already oversupplied market if sanctions against Tehran are lifted.
According to Shipbroker E.A. Gibson, the amount of Iranian oil stored on tankers is rising. More than 30 million barrels, this is the most - aside from September - that has been held offshore since August 2013.
Iran holds nearly 10 percent of the global crude oil reserves, however, currently it is exporting just over half its 2011 levels, before sanctions were introduced by the West.
Analysts say, this will heap more pressure on OPEC producers, which have already been struggling with low oil prices.
[Warren Gilman, chairman & CEO, CEF Holdings] "Clearly the price of oil has not fallen enough, fallen enough to cause that fall to occur, add on to that, the potencial 24 to 48 hours with a deal with Iran, which we will see new supplies coming on to the world market. If that is to occur, that would be immediate stimulus for drop in the price down to the 40 dollar range to WTI."
But some other experts believe geopolitical concerns among investors will support the oil rebounding, especially IF there's no deal reached from the Iran nuclear talks.
Officials of Yemen's embattled government have expressed confidence that a Saudi-backed offensive would suppress rebels who have torn the country apart, but outside experts are less sure that the Saudis will bring things under control anytime soon.
We talked about the importance of Yemen's geographic location earlier.
And Investors are still worried about whether the safety of oil shipments in the region will be affected by Yemen's situation.
Here's what Jonathan Barratt, Chief Investment Offier from Ayers Alliance Securities has to say.
[JONATHAN BARRATT, Ayers Alliance Securities CIO] "I think people are going to start to think, they are gonna price some geopolitical risk in, and I think that's going to support price. So let's say, what obviously happening in Iran at the moment with the nucelar, let's say what's happening in Yemen, and I think any deep will be well supported, as people value the geopolitical concern."
Oil prices might face some volatilities this week, with investors waiting for Iran nuclear talks' outcome.
CNBC's Qian Chen, reporting from Singapore.