Oil prices retreated on Monday amid expectations that supply will increase, especially after Iran and global powers near an agreement regarding Iran’s nuclear power programme. The deal is expected to result in an increase in oil supply as Iran will raise its production capacity.

The deal is expected to loosen sanctions imposed on Iran, affecting its oil production and exports.

US crude fell $0.90 to $51.83 per barrel (pb), while Brent contracts dropped by almost $1 to $57.74 pb.

A spokesperson for the Germany’s Federal Foreign Office said that Germany expects an agreement to be reached between Iran and global powers “within days”.

"Tehran has made clear its intention to lift exports as soon as the ink dries on an accord," the International Energy Agency (IEA) said in its monthly report published July 10.