Lausanne statement sends ripples through oil market

News over the success of Iran and P5+1 to reach mutual understanding over solutions to move toward the final nuclear comprehensive agreement has sent ripple effects through the global oil market.

Prices decreased by 4 percent in early Friday trading with European benchmark Brent dipping below $55. The loss, however, was recovered in later hours of the day.

Analysts say in an already saturated market the prospects for the return of Iranian supplies, a large part of which still off hands due to sanctions, triggered the loss.

Still, pressures from other geopolitical factors, most importantly the Yemen crisis, continue to push prices higher.

Representatives of Iran and the P5+1 group of countries along with senior officials of the European Union have held intense talks in Lausanne for eight days. The talks were meant to narrow differences on Tehran’s nuclear energy activities.

The talks culminated in a joint statement in which the sides said they had reached mutual understanding over Iran’s nuclear program and will work to draw up a final accord by the end of the self-designated June 30 deadline.