Oil slips from seven-year high

Oil slipped to about $91 a barrel on Tuesday before a resumption of indirect talks between the United States and Iran, which could revive an international nuclear agreement and allow more oil exports from the OPEC producer.

A deal could return more than 1 million barrels per day (bpd) of Iranian oil, equating to more than 1 per cent of global supply, to the market. The nuclear talks are due to resume in Vienna on Tuesday.

Brent crude was down $1.45, or 1.6 per cent, at $91.24 a barrel by 1430 GMT after hitting a seven-year high of $94 on Monday. US West Texas Intermediate crude fell by $1.09, or 1.2 per cent, to $90.23.

"If sanctions against Iran are lifted, global crude oil supply may receive much-needed support," said Naeem Aslam, chief market analyst at Avatrade.

Eight rounds of indirect talks between Tehran and Washington since April have yet to result in an agreement on a resumption of the 2015 nuclear pact, with differences remaining over the speed and scope of the lifting of sanctions.

"Exports could resume swiftly if a nuclear deal is reached," said Tamas Varga of broker PVM. "But it is a big 'if'. The re-emergence of Iranian barrels is only a possibility at this stage."