LONDON: Brent crude oil pushed towards $111 a barrel yesterday and was on track to end higher for the second week running, as expectations dwindled of an imminent breakthrough in talks over Iran’s nuclear programme.
Iran and six global powers struggled yesterday to overcome stumbling blocks holding up an interim deal under which Tehran would restrain its contested nuclear programme in exchange for some relief from punitive sanctions.
“There’s not a lot of optimism to find in the Iran negotiations after yesterday,” said Bjarne Schieldrop, chief commodity analyst at SEB.
Brent for January delivery was up 72 cents at $110.80 per barrel at 1419 GMT. US crude was trading 31 cents lower at $95.13 per barrel, after posting its biggest gain in nearly two months on Thursday.
Sanctions on Iran have kept around one million barrels per day of oil from the global market and any deal could allow some of that crude to be sold, potentially bringing down prices.
The premium of Brent oil futures to US oil was at $15.67, nearing its highest closing level since March on high stockpiles in the United States and Brent oil’s greater exposure to geopolitics.
reuters
