After a slide in crude prices on Wednesday's US stockpiles data, a push for a breakthrough in Iran's nuclear talks raises the prospect of even more supply hitting markets. Hayley Platt reports.
World powers enter a sixth day of talks with Iran over its nuclear program. There were high hopes for a breakthrough on an agreement which would curb Iran's nuclear ambitions. Germany's Foreign Minister, Frank-Walter Steinmeier was at the meeting of the Organization for Security and Cooperation in Europe, being held in Vienna. (SOUNDBITE) (German) GERMAN FOREIGN MINISTER, FRANK-WALTER STEINMEIER, SAYING: "The effort of all parties to reach success is genuine. The open question, which I cannot answer you yet, is whether the will and courage will be sufficient among all at the end." And that leaves a big question mark - whether Iran can be trusted to play by the rules. The West wants Iran to slow down its uranium enrichment capacity - which, it's suspected, could help it produce a nuclear bomb should it wish to. In return - the West will lift crippling economic sanctions on the Islamic State. And that could see Iran re-enter the oil market. That could be quite a challenge for Iran itself, says CCLA's James Bevan. (SOUNDBITE) (English) CCLA, JAMES BEVAN, SAYING: "There is then the question of getting capital back in. We know that Shell and ENI have already been around to look to see what they could do if they (Iran) were to begin to supply again but it's going to be a significant amount of new capital required to get the Iranian oil industry fully back on tap." Iran has been excluded from the oil market since 2012. Then they were pumping around 2 million barrels a day. But it's hardly been missed - demand has slowed along with China's economy - leaving a global glut in supply. At times prices have been at their lowest levels for six years. On Wednesday U.S. crude headed for its sharpest daily loss since early April - falling over 4 percent to just shy of $57 dollars a barrel. And Brent crude was down 1.7 percent to $62.04. (SOUNDBITE) (English) CCLA, JAMES BEVAN, SAYING: "I would anticipate that crude would oscillate broadly in a range of $30-$80 a barrel and for the near term more like $60-$75." That of course in part depending on success in the Iran deal - that not quite a done deal yet.