Oil prices pulled back slightly on Tuesday on the latest progress in last-ditch talks to revive the 2015 Iran nuclear accord, which would clear the way to boost its crude exports in a tight market.
Brent crude futures fell 14 cents, or 0.1%, to $96.51 a barrel at 0404 GMT, paring a 1.8% gain from the previous session.
U.S. West Texas Intermediate (WTI) crude futures declined 16 cents, or 0.2%, to $90.60 a barrel, after climbing 2% in the previous session.
The European Union late on Monday put forward a "final" text to revive the 2015 Iran nuclear deal, awaiting approvals from Washington and Tehran. A senior EU official said a final decision on the proposal was expected within "very, very few weeks".
"While the details around the timing of the resumption of Iran's oil exports remain uncertain even if the accord is revived, there is certainly scope for Iran to increase oil exports relatively quickly," Commonwealth Bank analyst Vivek Dhar said in a note.
He said Iran could boost its oil exports by 1 million-1.5 million barrels per day, or up to 1.5% of global supply, in six months.
"A revival of the 2015 nuclear accord will likely see oil prices fall sharply given that markets probably don't believe a deal will be reached," Dhar said.