REUTERS
Benchmark Brent crude futures dropped by $0.54 to $55.87 a barrel on Monday, after falling 5% on Friday as the market began to price in the possibility of a deal over Iran's nuclear program, analysts have said.
U.S. West Texas Intermediate futures were down by $0.97 to $47.90.
On Monday, oil prices continue to decline amid ongoing negotiations between six world powers and Iran on its nuclear program. In case of the success of the negotiations, economic sanctions against Iran may be suspended, resulting in an increase in oil supplies in the market, Reuters has reported.
"Any relaxation of Iran oil sanctions could see increased exports adding to swelling global supplies and further pressuring prices," ANZ bank said on Monday.
As reported earlier, the representatives of Iran and six powers - the United States, Britain, France, Germany, China and Russia – will continue negotiations on Monday in Lausanne, Switzerland. The parties have made some progress, but there are still disagreements that may hinder the reaching of an agreement by the deadline of March 31.