Crude oil storage tanks are seen from above at the Cushing Petroleum Center, appearing to run out of space to hold a historic supply glut that has driven prices up, in Cushing, Oklahoma March 24, 2016. REUTERS /Nick Oxford

TOKYO, Feb 7 (Reuters) – Oil prices fell on Monday as U.S.-Iran talks were expected to conclude on reviving a deal limiting weapons development OPEC country’s nuclear power plants, which would boost crude supply, although global supply concerns have limited losses.

The administration of US President Joe Biden on Friday reinstated sanctions waivers on Iran to allow international nuclear cooperation projects, as talks on the 2015 international nuclear deal enter the final stretch. Read more

If the United States lifts sanctions on Iran, the country could increase oil shipments, adding to global supply.

Brent crude fell 53 cents, or 0.6%, to $92.74 a barrel at 0055 GMT, after rising $2.16 on Friday.

U.S. West Texas Intermediate crude fell 74 cents, or 0.8%, to $91.57 a barrel, after gaining $2.04 the previous session.

Both benchmarks hit seven-year highs on Friday, extending their rally into a seventh week on lingering worries about supply disruptions fueled by political unrest among major global producers.

“Investors took profits on the US-Iran news, although they expect more twists in the talks and no near-term deal,” said Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd. .

“The market tone remained bullish, with investment bankers predicting that Brent will hit $100 a barrel and global supply continues to be tight, OPEC+ failing to meet production targets and the United States. United not increasing their production much,” he said.

Crude prices, which have already risen about 20% this year, are expected to top $100 a barrel on strong global demand, analysts said. Read more

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The Organization of the Petroleum Exporting Countries (OPEC) and its Russian-led allies, known as OPEC+, are struggling to meet their targets despite pressure from major consumers to increase production faster. Read more

Also in the United States, even though the number of rigs has increased for a record 18 consecutive months, oil production is still far from pre-pandemic record levels. Read more

Adding to the pressure, tensions remain high in Eastern Europe, with White House national security adviser Jake Sullivan saying on Sunday that Russia could invade Ukraine within days or weeks, but could always opt for a diplomatic route. Read more

Reporting by Yuka Obayashi. Editing by Gerry Doyle

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