The price of Brent crude oil has dropped today, as Iran is looking to clinch more deals from China.
The news comes after Iranian officials have put in place specific requirements in the event of finalising a nuclear deal with six world powers.
Brent crude was down 50 cents to $57.62, while US crude dropped 60 cents to $49.59 a barrel, Reuters reported.
Since 2012, China has purchased around half of Iran’s crude exports.
National Iranian Oil will approach crude buyers in China, including Unipec and Zhuhai Zhenrong, over possible oil ties.
According to analysts, producers pumped more than 1.5 million barrels per day (bpd) in the first half of 2015, in addition to the existing oversupply situation in the global oil markets.
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Germany-based Commerzbank analyst Carsten Fritsch was quoted by the news agency as saying: "There is a massive oversupply; stocks are rising and now we have the prospect of more Iranian oil coming onto the market."
In its recent report, Goldman Sachs said that oil prices needed to remain low for months in order to achieve a sufficient and sustainable slowdown in the US production growth.
The investment banking firm estimates US crude inventories will reach their maximum limit in April, and drop to around 350,000bpd during the May-September period.
However, the bank expects oil prices to be little more than its $40-a-barrel forecast over the next three months.
Goldman said inventories would increase by October, which could put a burden on prices in 2016.