Oil quotes grew on Monday morning after having fallen due to Iran’s agreement with the G6. Brent oil was trading in the $56.60 a barrel region and WTI with delivery in May was on offer for $50.70. The mood has changed since market participants realized that a proper agreement between Iran and the G6 will be signed no earlier than in June. Until then a lot can happen, not ruling out that the agreement itself could be ripped up for some reason or another.
The conclusions of these negotiations aren’t really having the best effect on the oil market in the long-term. Market participants understand that a removal of the sanctions will lead to an increase in Iranian production, a place which is ready and capable of pumping out 3 million barrels a day. Thus, market supply will increase leading to the price of all falling. The only thing to interfere in this would be a large-scale conflict in the Middle East, which could easily erupt due the ongoing situation in Yemen.