Iran remains biggest threat to energy market this year as many analysts believe a nuclear deal among Iran and six world powers could bring out new wave of oil supply to already over supplied market.

Diplomats from six world powers and Iran negotiating the terms of a sweeping nuclear deal with Tehran in Vienna.

Original deadline for the deal was 30th June which was extended by another week yesterday by the participants.

The discussions are at the final stage in a near two year process, which is aimed at permanently curbing Iran's nuclear program in exchange for removal of economic sanctions.

According to sources familiar, a deal is very close, since broader framework has already been agreed in April. However, it might take some more time to finalize the text.

However, if a deal doesn't get sealed by July it could be difficult to achieve since US Congress will have greater say in the matter.

Global crude benchmarks, such as Brent and WTI might come under pressure if a deal gets sealed before 9th. However, real sanctions removal and increase in supply might take some more time to surface.

Brent is currently trading at $63/barrel at $4.4/barrel premium to WTI.