Brent crude oil falls more than 2% after Iran deal

Brent crude prices fell by more than 2% today following a key deal between world powers and Iran on its controversial nuclear programme.

Brent North Sea crude, the European benchmark, for January delivery fell $2.48, or 2.23%, in early Asian trade to $108.57, while New York's main contract, West Texas Intermediate (WTI) for January, was down 84 cents, or about 1%, at $94.00 in mid-morning trade.

"Brent had rallied last week in response to market talk that the negotiations weren't going so well, and what we see right now is a downward correction of prices after the deal," Victor Shum, managing director at IHS Purvin and Gertz in Singapore, told AFP.

"The impact of the deal on global oil supply will however be limited since much of the sanctions continue to remain in place."

Iran yesterday agreed to curb its nuclear programme for the next six months in exchange for limited sanctions relief, in a preliminary accord with world powers meant to lay the foundations for a comprehensive agreement later this year.

The deal was reached in marathon talks in Geneva that ended Sunday after protracted negotiations between Iran and the so-called P5+1 nations comprising the United States, China, France, Britain, Russia and Germany.