
NEW YORK (AP) — Oil prices could be headed lower after the preliminary nuclear deal between Iran and six world powers, even though it does not allow Iran to export more oil.
In the short term, the deal may make it easier for Iran to sell the oil it is already allowed to sell under the sanctions, which would increase supplies on the world market. And the newfound cooperation between Iran and the West eases tensions that pushed oil prices higher in recent years.
But the deal, described by both sides as only a first step, raises the possibility that a more comprehensive agreement would eventually allow Iran to restore oil production to pre-sanctions levels. That could add 1 million barrels per day of oil to world markets — enough to meet the entire global growth in demand for 2014 projected by the International Energy Agency.