Brent drops towards $ 106 on Iran pact; US data eyed

Thursday, 16 January 2014 00:00 -     - {{hitsCtrl.values.hits}}

Reuters: Brent crude edged down towards $106 a barrel on Wednesday as the prospect of a rise in Iranian oil exports weighed, while investors looked ahead to weekly oil inventories data from the United States to assess supply. Big powers and Iran have continued to move ahead on an interim deal that eases some sanctions on Tehran in exchange for curbs on its nuclear program. Any signs that the initial deal might lead to higher Iranian oil exports will add to global supply and depress prices. “It looks as if we’re moving towards resumption of production (and the) lifting of sanctions,” Michael McCarthy, chief strategist at CMC Markets in Sydney, said. “That’s the major reason for the weakness in Brent.” February Brent crude slipped for a third session, down 18 cents to $106.21 a barrel by 0619 GMT. In the last two sessions Brent has hovered just above a two-month low of $106.03 hit on Friday. US crude for February delivery edged down 12 cents to $92.47 after settling up 0.86% on Tuesday. The preliminary accord between Iran and the P5+1 group of world powers goes into effect on 20 January. Under the deal, Iran’s oil exports are to hold at current levels of about one million barrels per day (bpd). Talks on a final settlement to the long dispute over Tehran’s nuclear ambitions will start in February.