Crude markets recovered from deep losses early in the session, but still ended the day in the red.
News that a pact was reached pushed prices down, as speculators were anticipating that Iranian crude would soon be let back into the market.
Prices recovered from early losses, though, as details of the pact became known: the main ban on Iranian oil exports would remain in place, but Iran agreed to freeze its nuclear program in exchange for some easing sanctions.
Though its a step in the right direction, we are not yet at the point where crude from Iran will enter the global market.
WTI prices stayed down more than Brent, as domestic production in the U.S. stays strong and supplies are on the rise.
Investors will keep eyes on any news surrounding the Iran situation, as they are all looking for signs of crude exports going into the market.
Focus will also shift to reports on the supply & demand situation in the United States.
WTI fell $0.75 to end the session at $94.09/bbl, while Brent recovered from early losses to settle down just $0.05 at $111.00/bbl. Bunker prices were stable in the primary ports.
Mumbai port is looking to set up a new bunker terminal and has hired local marine consultants i-maritime to study the matter, Chairman Rajeev Gupta has toldIndian news service Business Line.
"Traditionally, India has never been an attractive place for establishing a bunker terminal," said Gupta.
"However, the recent reductions in excise and custom duties on fuel give us the feeling that the time is right for a facility in Mumbai."
"We are currently evaluating two or three locations for the terminal; the study will tell us which is the best location and what would be the ideal business model for the terminal."
In addition to the terminal, the port was said to be studying if the anchorage can be widened and deepened "to improve productivity," and there has also been a proposal to start a floating bunker facility.