Oil eases below $57 as Iran, big powers negotiate
Reuters
Published Apr 02, 2015 06:56AM ET
Oil eases below $57 as Iran, big powers negotiate
By Christopher Johnson
LONDON (Reuters) - Oil prices slipped on Thursday as officials from the big global powers remained locked in nuclear talks with Iran that, if successful, could allow the Islamic state to release more crude oil onto world markets.
Negotiations on Tehran's disputed nuclear program have stretched well beyond a self-imposed March 31 deadline, with diplomats saying the chances of a preliminary accord in the next few hours are finely balanced.
Tehran is hoping for a deal that will end crippling economic sanctions and allow it to sell millions of barrels of oil, some of it stored at sea in supertankers and ready for delivery.
Brent crude for May was down 30 cents at $56.80 a barrel by 1000 GMT (0600 EDT). The contract settled $1.99 higher on Wednesday.
U.S. crude for May was down 40 cents at $49.69 a barrel, after closing up $2.49, or 5.2 percent, on Wednesday.
Most financial markets will be closed on Friday for public and religious holidays.
Crude prices snapped a three-session losing streak on Wednesday after the U.S. Energy Information Administration (EIA) said U.S. oil production dropped last week for the first time since late-December.
In the Swiss city of Lausanne, U.S. Secretary of State John Kerry and German Foreign Minister Frank-Walter Steinmeier said they would stay on in an effort to seal a political agreement with Iran, a step towards a final pact due by the end of June.
Iranian Foreign Minister Mohammad Javad Zarif said "significant progress" had been made but more discussions were needed to reach a deal on how to resolve a 12-year standoff over Tehran's nuclear ambitions.
Many analysts doubt a deal can be clinched in Lausanne.
"(I expect) nothing beyond a general statement of intentions to keep talks going through spring," Scott Lucas of EA WorldView, a specialist website on Iran and Syria, told Reuters Global Oil Forum.
Despite the data showing U.S. production falling, U.S. crude oil inventories climbed last week to a record high for the 12th straight week.
The EIA said U.S. crude stocks rose 4.8 million barrels to 471.4 million barrels in the week to March 27. [EIA/S] [API/S]
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.