Analysts at Goldman Sachs note that the prospect of agreement on Iran’s nuclear deal is a coin toss, which sees Brent oil if sanctions are lifted this year.

Key quotes

“We currently only expect a 50% probability of a deal in Dec-22 and a 50% probability that Iran will remain sanctioned through 2023.”

“A deal with Iran next month that would allow for a 3Q22 return of Iranian volumes to the market would represent up to $7/bbl downside risk relative to our above-consensus $105/bbl 2023 Brent forecast.”

But “would not derail our view for structurally higher prices.”

• WTI crude oil bounces off weekly low towards $89.00 on geopolitics, API inventory data