Oil: Renewal of the nuclear agreement argues against a noticeable recovery – Commerzbank

Brent Oil has dropped to a six-month low this week. Any recovery in oil prices is unlikely, in the opinion of economists at Commerzbank.

Oil prices should see their downward trend flatten out

“For one thing, fears of recession in the industrialised countries have been joined by serious concerns about China’s economy. And for another, a renewal of the nuclear agreement with Iran, which would involve sanctions being lifted, has probably never been within such tangible reach before.”

“Though oil prices should see their downward trend flatten out, a noticeable price recovery would probably only be triggered if the US were to reject a renewal of the nuclear agreement.”