Deal On Iranian Sanctions Looks Unlikely

Brent crude oil was steady above $80 on Monday as investors saw the possibility of a deal being reached between Iran and world powers as less and less likely. The commodity traded at $80.40 at 7:00 GMT with just hours to go before the deadline for an agreement passed.

World powers and Iran have been negotiating Tehran’s nuclear capabilities for nearly a year, with both sides working to reach a long-term deal that would lift the sanctions against Iran while also curbing the nation’s ability to develop nuclear technology. However, The Wall Street Journal reported that U.S. officials have said an agreement by the end of the day on Monday will be nearly impossible.

Several key issues remain unresolved, something that will prevent the two from coming to a lasting agreement. While some U.S. officials have expressed a desire to extend the deadline for a deal to March, others say that a few extra months will do nothing if negotiators were unable to make an agreement over the course of a year.

As the deadline approaches, investors will be watching for any developments in the talks, though most expect they won’t come up with a lasting solution any time soon.

OPEC is also in the spotlight this week as the group is set to convene for its annual meeting on Thursday. The cartel has been divided over whether or not to implement a supply cut in order to boost prices, leaving investors to speculate that it may not make a cohesive move. Most analysts have said Brent will likely remain low if the group does not make any changes to output.