Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Brent Above $109 On Doubts About US/Iran Relationship

ByBenzinga
AuthorBenzinga
Published 09/25/2013, 10:49 AM
Updated 05/14/2017, 06:45 AM

Brent crude oil climbed back above $109 as some began to doubt that the relationship between the West and Iran has the potential to improve. The commodity traded at $109.14 at 7:00 GMT on Wednesday morning.

Tension between the West and Iran has long supported oil prices as Iran moved forward with its disputed nuclear program. In an effort to keep the nation's nuclear capabilities from advancing, Western diplomats sanctioned Iranian oil and cut its exports by over 1 million barrels per day.

When Iranian President Hassan Rouhani expressed a willingness to negotiate with other world powers about Iran's use of nuclear technology, many saw it as an olive branch that could be a turning point in the icy relationship between the US and Iran. The two are expected to meet on Thursday alongside representatives from six other world powers to discuss the issue.

However, Reuters reported that cracks in their fragile relationship were revealed at the United Nations General assembly when the two failed to meet for a simple handshake. Rouhani has denied any ill feelings and said the failure to meet was simply a scheduling issue.

Gains were mitigated by improving supply from the Middle East. Iraq ramped up its exports after fixing a leaking pipeline and Libya worked to resolve labor issues which have closed several of its largest export terminals.

US crude stocks fell less than expected according to data from the American Petroleum Institute. On Tuesday the organization released a report that showed US stocks down by 54,000 barrels, less than analysts' prediction of a 1.1 million barrel drop.

Moving forward investors will have their eyes on data from the US Energy Information Administration, which is due out later on Wednesday.

By Laura Brodbeck

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.