Oil Trades near Two-Day Low on Iran Deal, Rising Supplies

IAEA head Yukiya Amano said yesterday UN inspectors and Iran broke a five-year deadlock with a deal that gives the International Atomic Energy Agency access to the nation’s military complex. Oil advanced in the first four months of this year on concern sanctions against Iran will disrupt supplies. The American Petroleum Institute said U.S. crude inventories rose 1.5 million barrels last week. A government report today may show a gain of 1.7 million. Ric Spooner, a chief market analyst at CMC Markets in Sydney said the agreement by Iran to let the inspectors in is a small step in potentially reducing the supply risk.He also said that t feeds into the overall situation where demand is steady to somewhat soft against a background of more than adequate supplies. (Bloomberg)