Oil declines on positive signs from U.S.-Iran talks

U.S. sanctions on Iran oil sales may go

Petrol drips from a gasoline pump at a petrol station in London in this January 19, 2011, file photo. Brent crude oil prices hit $108 a barrel for the first time since 2008 on Monday on fears that spiraling violence in Libya could lead to wider supply disruptions from the OPEC member. REUTERS/Bernadett Szabo (BRITAIN - Tags: BUSINESS ENVIRONMENT POLITICS ENERGY)

Oil prices fell on Monday as concerns over tight supply were offset by signs of progress in nuclear talks between the United States and Iran, which could lead to the removal of U.S. sanctions on Iranian oil sales.

Brent crude was down 61 cents, or 0.7%, at $92.66 by 1445 GMT, having earlier touched its highest since October 2014 at $94.

U.S. President Joe Biden’s administration on Friday restored sanctions waivers to Iran to allow international nuclear cooperation projects as talks on the 2015 international nuclear deal enter the final stretch.

Although the sanctions relief will have limited impact on Iran’s struggling economy, the move was perceived by markets as a signal that both sides are determined to reach a deal. Iran could quickly export millions of barrels of crude and help drive down oil prices if U.S. sanctions are lifted.