Oil resumes drop with possible return of Iran supply in focus

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Oil resumes drop with possible return of Iran supply in focus
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Oil fell at the start of the week with investors weighing the prospect for more Iranian supply as the outlook for economic growth weakens.

Brent futures lost around 1% to trade below $96 a barrel after rising over the previous three sessions. President Joe Biden spoke Sunday with leaders from France, Germany and the UK about reviving a nuclear deal with Iran, which could lead to a surge in supply from the OPEC producer.

Biden and his European allies discussed “ongoing negotiations” toward a nuclear agreement, including “the need to strengthen support for partners in the Middle East region,” according to a US summary of the call released Sunday. Iran submitted its response on Aug. 15 to a framework circulated by the EU for a deal, which the EU took as constructive.

Brent for October settlement slid 1.2% to $95.57 a barrel on the ICE Futures Europe exchange at 12:01 p.m. in Singapore.

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