SINGAPORE- Oil slid more than 2 percent in early Asian trade on Thursday after both France and Iran said parties are closer to an agreement to salvage Iran’s 2015 nuclear deal with world powers, offsetting ongoing concerns over the situation in Ukraine.
US West Texas Intermediate (WTI) crude was trading down $2.50, or 2.7 percent, at $91.16 a barrel, after it ended up 1.7 percent the previous day.
Brent crude was trading down $2.43, or 2.6 percent, at $92.38 after the contract closed up 1.6 percent in the previous day’s trade.
“Positive news from the US-Iran nuclear negotiations is providing much-needed relief to global oil prices, as the possibility of new crude supplies reduces the supply-demand deficit,” said Claudio Galimberti, senior vice president of consultancy Rystad Energy.
France on Wednesday said a decision on salvaging Iran’s 2015 nuclear deal with world powers was just days away and that it was now up to Tehran to make the political choice, while Tehran called on Western powers to be “realistic.”
Oil markets have been dominated in recent weeks by Russia’s threatening posture toward Ukraine, with concerns that supply disruptions from the major producer in a tight global market could push oil prices to $100 a barrel.
Meanwhile, South Korea and Iran have held working-level talks on resuming imports of Iranian crude oil and unfreezing Iranian funds held in the East Asian nation, South Korea’s foreign ministry said on Wednesday.
South Korea was previously one of Iran’s leading Asian oil customers. The move coincides with negotiations resuming in Vienna to revive Tehran’s 2015 nuclear agreement with world powers.
Tehran has repeatedly demanded the release of about $7 billion of its funds frozen in South Korean banks under US sanctions, saying Seoul was holding the money “hostage”. – Reuters
