Oil fell from a three-month high as Iran said it would raise output to pre-sanctions levels before joining talks to freeze production.
Futures dropped as much as 3.2 percent in New York.
West Texas Intermediate for April delivery fell $1.22, or 3.2 percent, to $37.38 a barrel at 9:03 a.m. on the New York Mercantile Exchange.
Brent for May settlement fell $1.18, or 2.9 percent, to $39.21 a barrel on the London-based ICE Futures Europe exchange. The European benchmark grade was at a 21 cent premium to WTI for May delivery.
“Prices are down sharply after the Iranians thumbed their noses at the production freeze,” said Bob Yawger, director of the futures division at Mizuho Securities USA in New York. “The market is set for a bit of a pullback after rallying into over-bought territory.”
The contract climbed 1.7 percent to $38.50 on Friday, the highest close since Dec. 4. Total volume traded was 7.2 percent below the 100-day average. Prices rose 7.2 percent last week.

Source: Bloomberg, 14 March 2016