(MENAFN- The Peninsula) Oil prices fell yesterday as investors awaited the outcome of Iranian nuclear talks which could lead to a big increase in Iranian crude exports at a time when the market is already over-supplied.
Dealers also kept an eye on negotiations to try to avert a Greek debt default and avoid Greece's exit from the euro.
A Greek default would be likely to strengthen the dollar against the euro, providing headwinds for oil and other commodities priced in dollars, economists say.
Brent crude for August was down 50 cents at $62.70 a barrel by 1345 GMT after ending the previous session down 29 cents. US crude was down 70 cents at $59 a barrel after finishing Thursday down 57 cents.
Analysts and traders said the market was being pressured by a mix of bearish factors, including the possibility that Iran may strike a deal with Western powers to end economic sanctions. A resumption of Iranian crude exports would exacerbate a global over-supply.
"A significant amount of unneeded oil will flow into the global markets in a relatively short time frame as Iran has a large volume of oil sitting in floating storage that is likely to hit the market very quickly," said Dominick Chirichella of the Energy Management Institute.
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