Oil lower on report of Iran nuclear deal

Oil futures were lower yesterday, with analysts attributing the drop to a report of progress toward a deal between the U.S. and Iran. The two countries are close to a temporary agreement that would offer some sanctions relief in return for Iran reducing uranium enrichment activities, the Middle East eye, a London-based news site, reported, citing two sources with direct knowledge of the talks. The terms of the deal would include Iran quitting its 60% and more uranium enrichment activities, and in return, it would be allowed to export up to a million barrels of oil a day. Other news reports have pointed to progress in the negotiations in recent days. It is an emotional reaction at this point for oil, said Phil Flynn, senior market analyst at The Price Futures Group. July West Texas Intermediate crude CLN 23, down $2.09, or 2.9%, at $70.44 a barrel on the New York Mercantile Exchange.