FAST FIVE: Oil Dumps And Jump After US Lifts Sanctions On One Iranian Oil Official, Clarifies "Nothing To Do" With Nuclear Deal

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* * * Oil is tumbling, dropping below the key $70 level, and sliding as low as $68.68 following a Bloomberg report that the US has lifted sanctions on Iranian oil officials as well as entities in Dubai.

*US DELETES SANCTIONS ON 3 PEOPLE, INCLUDING ONE OIL OFFICIAL .

which the market appears to be interpreting as a harbinger of a broader easing in Iranian sanctions, opening the door to more supply from the region.

While there is still little information, the market is likely getting ahead of itself here, because as we reported previously, Iran's chief negotiator said earlier in Vienna talks that the texts are more transparent, but differences still exist, a sentiment which was underscored by SecState Anthony Blinken who said that “hundreds of sanctions” would remain on Iran even if/when a deal is struck.

Meanwhile, Deputy Secretary of State Sherman said on Wednesday that nuclear negotiations will resume this weekend, adding that a lot of progress has been made in talks but we won't know if we have an agreement until the last detail is “nailed down.” As an aside, Iran has said it intends to raise oil output by at least 3.3mln barrels within a month after the lifting of US sanctions, and as much as 4mln BPD within three months.

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