Brent crude oil fell more than $2.00 per barrel after a deal was struck between Iranian officials and Western leaders. The deal, although expected by many, put pressure on Brent prices and pushed the commodity downward. Brent traded at 108.54 at 5:25 GMT on Monday morning.
Over the weekend, CNBC reported that World powers and Iranian officials reached an agreement about Iran's nuclear program, which pushed Brent prices lower. News of the deal caused Brent prices to fall, but many see the slide as limited, since the agreement doesn't necessarily mean Iranian oil will be returning to the markets.
Western Powers agreed to a six month interim deal, under which some say oil sanctions will remain unchanged. With that said, many see the deal as a good will gesture that shows improving Western relations in the troubled Middle East, something that will likely reduce supply disruptions from the area.
Moving forward investors will focus on US data, due out early this week as the Thanksgiving holiday will shut down markets on Thursday. Housing data as well as consumer confidence will play a role in oil prices as investors look to the US central bank for clues about its time line for cutting down on its $85 billion per month stimulus spending plan.
Although most don't expect to see a cut in 2013, last month's FOMC minutes showed that some Fed members were ready to begin cutting back as soon as December if data warranted. Any US data that shows marked improvement will likely cause more speculation about the taper.