Oil down more than 1% on reports of on-then-off Iran nuclear deal

Investing.com -- Crude prices tumbled anew Thursday before closing off their lows as a report suggesting a U.S.-Iran nuclear deal that would let the Islamic republic legally export some of its sanctioned oil was refuted by the White House.

“This report is false and misleading," a spokesperson for the White House National Security Council said in comments carried by Reuters, referring to the report that appeared on the Middle East Eye website. "Any reports of an interim deal are false."

The denial didn’t stop oil markets from registering a substantial drop on the day, though they finished off the bottom.

New York-traded West Texas Intermediate, or WTI, crude settled down $1.24, or 1.17%, at $71.29 per barrel. It plunged to as low as $69.09 earlier, breaking the key $70 support.

London-traded Brent crude officially finished the day down 99 cents, or 1.3%, at $75.96. Brent’s session low was $73.61, breaking its $75 support.

“While we wait to see if U.S.-Iran nuclear negotiations get anywhere after this, today’s price move tells you there are so many things that aren’t well with the oil market despite Saudis attempts to push it higher with one promised production cut after another,” said John Kilduff, partner at New York energy hedge fund Again Capital.

Saudi Arabia said on Sunday it would take off another million barrels per day from its production in July, effectively removing some 2.5M barrels per day since October from its normal daily output of 11.5M barrels. The Saudi pledge came after its 12 partners in OPEC, or the Organization of the Petroleum Exporting Countries, and 10 other allies, including Russia, in OPEC+ alliance decided to stay pat on production.

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