The nuclear deal reached between Iran and world powers in Geneva on Sunday could also be a boon for the Jordanian fuel market in the coming weeks, an oil expert predicted Monday. 

Fahed Al Fayez, president of the Gas Station Owners Association (GSOA), told The Jordan Times over the phone that Jordanian consumers may pay less for fuel products as of early next year, when the government updates prices of oil derivatives for January. 

Fuel prices in the domestic market have become linked to those on the global market after authorities removed fuel subsidy on November 14, 2012. 

Fayez predicted that oil prices on the global market to go down after the six world powers reached a deal with Iran over its nuclear programme two days ago. 

“Tension between Iran and the West has sent oil prices up in recent years,” he elaborated, adding that the deal would also allow Iran to sell more oil, which would boost crude supplies to the global market. 

On Monday, the breakthrough accord prompted oil prices to fall and world equity markets to rise.  

Brent crude, an international benchmark used to price oil derivatives in Jordan and many other countries, was down by $2.15 at $108.90 in European trade Monday after it had earlier slid $3 to hit a low of $108.05, according to Reuters.

In remarks to The Associated Press, Kevin Book, an analyst at ClearView Energy Partners in Washington, predicted the price of Brent crude could fall to $90 a barrel by the end of next year if talks yield a final agreement.

Analysts expect the international oil market to be more stable in the coming months.  

Pricing update for December 

In regards to the pricing update for December the government is set to announce Saturday night, Fayez said that prices of oil derivatives are likely to drop by 2.5 per cent. 

He said that the global average price of Brent crude was around $106 until November 24, down from its average price in the previous month, which reached $109.3. 

He expected prices of gasoline to drop lower than those for kerosene and diesel in the domestic market. 

Currently, one litre of unleaded 90-octane gasoline is sold at JD0.810, while a litre of 95-octane is priced at JD0.98.

Prices of diesel and kerosene are JD0.675 per litre.