An interim agreement between Iran and world powers this past weekend pulled down crude oil futures on Monday, according to Bloomberg.
Both Brent and West Texas Intermediate were slumping in the aftermath of a pact that both sides committed signatures to on Sunday in Geneva, which outlines restrictions for the nation's nuclear program in exchange for as much as $7 billion in relief from economic sanctions. The Middle Eastern nation is free to ship no more than 1 million barrels of the energy commodity per day.
"We're seeing both sides come one step closer to each other," senior oil analyst Andy Sommer with Axpo Trading AG in Dietikon, Switzerland told the publication on Monday. "The deal doesn't have a direct impact on oil exports, but there's still good reason to think a solution is on the horizon in terms of oil. The risk premium has declined."
At 10:05 a.m. on Monday, WTI crude oil futures fell 0.91 percent, an 86-cent drop to $93.98 per barrel. At 10:06 a.m., Brent crude oil futures dove 1.5 percent, a $1.67 loss to $109.38 per barrel.
Reuters reports crude oil prices' drop prompted the rise of the yield of Indian government bonds set for maturity in 10 years.
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