Crude oil futures settled below $90 a barrel on Wednesday on persistent fears that Greece will exit the Eurozone and as negotiations progress between Iran and six global powers over its nuclear ambitions.

Crude oil for July delivery declined $1.95 to settle at $89.90 a barrel, a fresh seven-month low.

Prices are expected to fall further on concern about soft demand from Europe as markets consider the impact of Greece’s possible exit of the Eurozone and future implications for Europe’s economic health.

On the ICE North Sea Brent crude for July dropped $2.83 a barrel to $105.56.

Meanwhile there were signs of progress made between Iran and China, the EU, Russia and the US over Iran’s nuclear ambitions as Iranian authorities tentatively agree to allow inspectors from the International Atomic Energy Agency to restart their inspection of the nation’s nuclear programme.

Iran, which is OPEC’s second-largest oil producer, has previously threatened to block the key Strait of Hormuz and an EU embargo on imports of Iranian crude is scheduled to kick in at the start of July. However markets are increasingly hopeful that progress will be made and ultimately ease global supplies worries.

Among precious metals sank 1.8% on Wednesday as jitters about Greece continued to sap investor appetite.

Gold for June delivery plunged $28.20 to settle at $1,548.40 an ounce, after falling as much as $43.80.

CJ