Oil slides over 2% from 7-year high on more U.S.-Iran talks | Reuters

Oil slides over 2% from 7-year high on more U.S.-Iran talks | Reuters

Oil slid more than 2% on Tuesday from recent seven-year highs as the resumption of indirect talks between the United States and Iran 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 to the market, boosting global supply by about 1%. The nuclear talks resumed in Vienna on Tuesday. read more

Brent futures fell $1.91, or 2.1%, to settle at $90.78 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $1.96, or 2.1%, to settle at $89.36.

Both benchmarks, however, face extreme backwardation in coming months. Futures for Brent and WTI through July were in what Robert Yawger, executive director of energy futures at Mizuho, called "super-backwardation" with each month trading at least $1 a barrel below the prior month.