Oil fell more than 1 per cent today as dealers cautiously weighed a "basic" nuclear deal agreed by Iran and Russia.
US oil futures for April delivery slid 72 cents, or 1.14 per cent, to $62.19 a barrel.
Prices had soared 4 per cent on Friday after news of the failed raid on an oil facility that handles most Gulf supplies from the world's biggest exporter, but dealers locked away some of those profits today as exports flowed undisturbed.
London Brent crude fell 69 cents to $61.91 a barrel.
"The Iran issue has settled down a little bit after they agreed this joint venture with Russia," said Nahiro Niimura, vice president of Mizuho Corporate Bank's derivatives unit in Tokyo. "That drives some market participants to sell."
Iran said yesterday it had reached a "basic agreement" with Russia on jointly enriching uranium. Moscow had proposed for Iran's uranium to be enriched in Russia to defuse suspicions that it might use some of the fuel for nuclear weapons.
"Talks to complete this package will continue in coming days in Russia," said Iranian nuclear chief Gholamreza Aghazadeh.
But there was no immediate sign that Tehran would suspend home-grown enrichment, the crux of a dispute that oil traders fear could disrupt exports from Opec's second-largest producer.
Dealers will now be looking for more clues when the board of the United Nations' watchdog, the International Atomic Energy Agency, meets on March 6th to discuss its latest report.