Crude traders are skeptical that the accord loosening some economic sanctions against Iran in return for limiting nuclear work will lead to a surge in oil supply from what was once OPEC’s second-biggest producer.
West Texas Intermediate crude fell the most in three weeks as Syria agreed to a Russian plan to surrender its chemical weapons, easing concern that the conflict will escalate and disrupt oil shipments from the Middle East.
Negotiations to halt Iran’s nuclear-enrichment program will probably fail, setting the stage for full implementation of U.S. and European Union sanctions against the nation’s oil exports, Societe Generale SA said.
Brent crude may “spike briefly” to $150 a barrel if a U.S.-led attack on Syria sparks further conflict in the Middle East and leads to supply disruptions, Societe Generale SA said in a report e-mailed today.
West Texas Intermediate crude surged to the highest level since May 2011 on concern that the conflict in Syria will spread and threaten oil supplies from the Middle East. Brent climbed to a six-month high in London.