Brent crude oil falls more than 2% after Iran deal

  • AFP, Singapore
  • Updated: Nov 25, 2013 13:18 IST

Brent crude prices fell by more than two percent on Monday following a key deal between world powers and Iran on its controversial nuclear programme.

Brent North Sea crude, the European benchmark, for January delivery fell by $2.48, or 2.23%, to $108.57, while New York's main contract, West Texas Intermediate (WTI) for January, was down 82 cents, or about 1%, at $94.02.

Iran on Sunday agreed to curb its nuclear programme for the next six months in exchange for limited sanctions relief, in a preliminary accord with world powers meant to lay the foundations for a comprehensive agreement later this year.

"Brent had rallied last week in response to market talk that the negotiations weren't going so well, and what we see right now is a downward correction of prices after the deal," Victor Shum, managing director at IHS Purvin and Gertz in Singapore, told AFP.

"The impact of the deal on global oil supply will however be limited since much of the sanctions continue to remain in place."

Tan Chee Tat, an investment analyst at Phillip Futures in Singapore, said WTI was less affected by the deal as any potential influx of Iranian oil into global markets will mainly soften Brent.

"Brent and Iran crude oil are catered to the same regional clients. As such, the news had a greater negative impact on Brent crude instead of WTI crude," he said.

The deal was reached following marathon talks in Geneva between Iran and the so-called P 5+1 nations comprising the United States, China, France, Britain, Russia and Germany.

The West and Israel suspect Iran is pursuing a nuclear weapons capability alongside its uranium enrichment programme, which Tehran insists is entirely for peaceful purposes.

From Around the Web
Sponsored by Revcontent

also read

Govt will have to create an ecosystem of trust to pass GST: Mitra
Show comments

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Chrome and Ad BlockPlus users

1.Press the ‘ABP’ icon in your toolbar at top right of this page

2. Click on ‘Enabled on this site’; this should now change to ‘Disabled on this site’


chrome



For Chrome and Ad Block users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don’t run on pages on this domain’ and then click ‘exclude’ on the pop up


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Mozilla and AdBlock Plus (ABP) users

1.Press the ‘ABP’ icon in your toolbar

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Internet Explorer and AdBlock Plus users

1.Press the ‘AdBlock Plus’ icon in your status bar at the bottom of the screen

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Safari and AdBlock users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don't run pages on this domain’ and then click 'exclude'


chrome