Oil prices rose, recovering losses as a deal with Iran on its nuclear programme has been reached. A deal means that sanctions on Iranian crude exports will be lifted and the country sell more crude oil on the global market. The global oil market is already oversupplied. More crude oil will lead to falling oil prices.

It is not clear how long it would take for the sanctions to be lifted.

Market participants are awaiting the release of U.S. crude oil inventories data. The American Petroleum Institute (API) is scheduled to release its U.S. oil inventories data later in the day, and U.S. oil inventories data from the U.S. Energy Information Administration is expected on Wednesday.

WTI crude oil for August delivery increased to $52.31 a barrel on the New York Mercantile Exchange.

Brent crude oil for August rose to $58.28 a barrel on ICE Futures Europe.

Gold recovered losses after the release of the weaker-than-expected U.S retail sales data. The U.S. retail sales unexpectedly fell 0.3% in June, missing expectations for a 0.3% increase, after a 1.0% gain in May. May's figure was revised down from a 1.2% rise.

The decline was partly driven by lower automobiles and clothing stores purchases. Automobiles sales fell 1.1% in June, while sales at clothing retailers slid 1.5%, the largest fall since September 2014.

Retail sales excluding automobiles decreased 0.1% in June, missing forecasts for a 0.5% rise, after a 0.8% gain in May. May's figure was revised down from a 1.0% increase.

Market participants are awaiting a speech by the Federal Reserve Chair Janet Yellen tomorrow. Yellen said on Friday that she expects the interest rate hike by the Fed at some point this year. But she added that the U.S. labour market remains week.

August futures for gold on the COMEX today declined to 1154.60 dollars per ounce.

A deal with Iran on its nuclear programme has been reached. A deal means that sanctions on Iranian crude exports will be lifted and the country sell more crude oil on the global market. The global oil market is already oversupplied. More crude oil will lead to falling oil prices.

According to a deal, UN inspectors will have access to all suspect Iranian sites.

West Texas Intermediate futures for August delivery dropped to $51.48 (-1.38%); Brent crude declined to $57.25 (-1.04%) as markets prepared for announcement of a deal between Iran and global powers today. An agreement would allow Iran to increase its oil exports gradually.

Meanwhile the Organization of the Petroleum Exporting Countries raised its global oil demand forecast for this year by 100,000 barrels per day to 92.61 million bpd. According to the organization's July report, demand for oil in 2016 will be 93.94 million bpd. Thus demand growth will accelerate to 1.34 million bpd in 2016 from 1.28 million bpd in 2015. At the same time the cartel reported an increase in its own production by 283,000 bpd in June, to average of 31.38 million bpd.

(raw materials / closing price /% change)

Oil 52.01 -0.36%

Gold 1,155.40 +0.16%