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

Feb 7 (Reuters) – Oil prices fell to their highest level in seven years on Monday as concerns over tight supply were offset by signs of progress in nuclear talks between the states States and Iran, which could lead to the lifting of US sanctions on Iranian oil sales. .

Brent crude was down 42 cents, or 0.5%, at $92.85 as of 12:03 a.m. EST (1503 GMT), after hitting its highest level since October 2014 at $94.

U.S. West Texas Intermediate crude fell 93 cents, or 1%, to $91.38 after touching $92.73.

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

Although the sanctions relief will have a limited impact on Iran’s struggling economy, the move was seen by markets as a signal that both sides are committed to reaching a deal.

Iran could quickly export millions of barrels of crude and help lower oil prices if US sanctions are lifted. It appears that Iran has oil in place to prepare for the eventual resumption of its exports.

“Iran may be running out of money from the sale of barrels of oil and the oil complex is certainly running out of oil,” said John Kilduff, a partner at Again Capital LLC in New York.

Kazuhiko Saito, chief analyst at Fujitomi Securities, said “investors expect more twists” in the talks, with no deal likely any time soon.

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

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

Fueling supply issues, 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 a few days. weeks, but could always opt for a diplomatic route. Read more

Additional reporting by Bozorgmehr Sharafedin in London and Yuka Obayashi in Tokyo Editing by Louise Heavens and Marguerita Choy

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