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Brent‘s value decreased today as supply concerns were eased, following a deal between Iran and world powers on Sunday in Geneva.

Brent crude dropped by 22 cents to $110.78 a barrel, while US crude increased by 39 cents to settle at $94.48 a barrel, reported Reuters.

Currently, Iran is deploying more vessels to help store oil at sea and enable it to conclude discreet sales, by transferring cargoes to customers’ ships in mid-ocean without having to enter a port.

The OPEC member is also aiming to keep its fields working and mitigate losses of several billion dollars a month, as sanctions remain in place for at least another six months.

Brent recovered some of the losses, as traders ruled out any immediate increase in Iranian oil shipments after officials said the deal struck in Geneva leaves the US and European oil sanctions in place for half a year.

Brent initially fell in reaction to the long-awaited nuclear deal, in which Iran agreed to cut its nuclear programme in exchange for some sanction relief.

Tough measures against Iran in the past two years have prevented western energy companies from dealing with Tehran and slashed exports from the OPEC member by more than half, keeping Brent at more than $100 a barrel.

Investors are also waiting for the American Petroleum Institute’s oil stocks and US Energy Information Administration data, which are scheduled for release today and Wednesday respectively.

Oil traders were also keenly watching fresh violence in Libya, where exports have been running at a fraction of the levels seen earlier this year of more than one million barrels per day.

Libyan troops struggling to establish control across the country clashed with militants in the eastern city of Benghazi on Monday and at least nine people were killed in the fighting.


Image: Brent futures held near $111 a barrel on Tuesday. Photo courtesy of freedigitalphotos.net.

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