Oil Bulls Get Nervy With Iran

US Oil dropped below $80 a barrel on Thursday, as crude oil prices dipped after Iran and world powers agreed to resume nuclear talks this month, which may lead to the removal of U.S. sanctions on Iranian oil, increasing global supplies.

For a third day, West Texas Intermediate crude fell more than 1% to $79.98 a barrel in Asia. For the second session in a row, January Brent crude futures fell to $81.33 a barrel, down 0.8%.

On an intraday basis, traders are expected to see more declines because if 79.85 is not broken and $80.65 a barrel is breached, the current downward trend will be ended and a new recovery attempt will begin.

Brent and WTI both posted their biggest daily percentage declines since early August, with Brent closing at its lowest since Oct. 7 and WTI since Oct. 13, following data from the U.S. Energy Information Administration showing that crude inventories increased more than expected last week.

Iran’s announcement that the United States and Iran will resume nuclear talks was the key driver of the drop in oil prices.

On Nov. 29, Tehran and six countries will begin talks about reviving the 2015 nuclear deal with Iran. US sanctions restricting Iranian oil exports have been demanded by Iran.

OPEC+, a group that includes Russia and its allies, will meet later today. Although there has been a call for acceleration, the group will likely confirm plans to keep monthly supply increases steady.