Oil prices faltered on Wednesday morning as investors anticipated progress to be made at talks between Western powers and Iranian leaders set to resume later in the day.
The two sides made considerable progress earlier in November, however they failed to reach an agreement on Iran's disputed nuclear program and will resume negotiations this week.
Brent prices fell to $107.87 at 5:00 GMT on Wednesday morning ahead of the talks as most are expecting a deal to be made. The decade long standoff between the the West and Iran over Iran's nuclear capability has resulted in sanctions which kept much of Iran's oil from the markets. At today's talks, world leaders will attempt to reach an agreement under which Iran will open its nuclear facilities to more rigorous inspections in exchange for looser sanctions.
CNBC reported that US President Barack Obama has been optimistic about the talks, saying that a deal is essential in order to keep Iran from developing nuclear weapons. Although several members of Congress have pushed for tightening sanctions on Iranian oil while the talks are carried out, Obama urged the US government hold off.
Brent prices also fell under pressure after one of Libya's largest oilfields reopened after being closed down due to protests. The country's Mellitah port resumed production and could increase its output to 80,000 barrels per day on Wednesday. Labor protests in Libya shut down much of the country's oil production and more than halved its export capacity over the past few weeks.
Moving forward investors will be waiting for data from the US Energy Information Administration due out on Wednesday morning for a picture of the world's number one oil consumer's recent appetite.