Posted at: 11/25/2013 11:08 AM
NEW YORK (AP) - World oil prices could be headed lower after the preliminary nuclear deal between Western nations and Iran, even though the deal does not loosen sanctions on Iran's oil exports.
In the short term, the deal may make it easier for Iran to sell the oil it is already allowed to sell under the sanctions, which would increase supplies. And the newfound cooperation between Iran and the West eases tensions that pushed oil prices higher in recent years.
It also raises the possibility that a more comprehensive agreement would eventually allow Iran to restore oil production to pre-sanctions levels. That could add 1 million barrels per day of oil to world markets - enough to meet the entire global growth in demand for 2014 projected by the International Energy Agency.
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