Oil price falls as Iran deal eases supply fears

A deal to lift sanctions against Iran could allow a flood of oil into markets by next year just as crude output pick ups in Libya, Iraq and North America triggering a slide in prices and a shake-up of the energy landscape. While welcome to the West, cheaper oil poses a threat to Russia and countries that depend on oil revenues to finance their budgets. The accord should unlock 800,000b/d by next year in a market of 89m, cutting prices by $13 over time, enough to depress Brent crude below $100 and US crude below $85. Oil duties furnish half the budget in Russia where the break-even price reached $117 last year and Saudi Arabia's break-even cost has jumped to $98, though it still has $700bn of foreign reserves to be used in extremis.