Oil was slightly lower Monday as tensions eased over Iran’s nuclear program.
Benchmark US crude fell four cents to $US102.79 per barrel in New York. But Brent crude, which is used to benchmark the price of oil produced outside of the US, lost $US2.72 to $US118.49 per barrel in London. Middle East tensions were the primary reason Brent rose 13 per cent this year through Friday.
Iran discussed its nuclear ambitions with the US and several other countries at a weekend meeting in Istanbul. The meeting didn’t produce any concrete agreements, but analysts said the potential of fighting in the Persian Gulf goes down as long there are negotiations. Both sides agreed to meet again on May 23.
Iran, which threatened earlier this year to defend its nuclear program by closing off crucial oil shipping routes, now says it can resolve Western concerns “quickly and easily”.
Foreign Minister Ali Akbar Salehi, who was quoted by the semiofficial ISNA news agency, also said it was time to end sanctions on the Islamic Republic.
Western nations have worked to halt Iran’s oil trade this year in hopes of forcing the country to the negotiating table. The actions have curtailed oil sales that Iran relies on to run its government.
Meanwhile, US petrol prices were flat at a national average of $US3.907 per gallon, according to auto club AAA, Wright Express and Oil Price Information Service. Petrol prices have levelled off during the past week, though experts still predict that they’ll climb higher by Memorial day.
In other energy trading, heating oil lost 5.05 cents to $US3.1241 per gallon and petrol futures gave up 6.17 cents to $US3.2844 per gallon. Natural gas futures added 2.7 cents to $US2.008 per 1000 cubic feet.
