Brent On Longest Losing Streak Since April
Brent crude oil slid on Wednesday as easing supply concerns and caution ahead of key data from the US and China put pressure on prices.
The commodity traded at $107.82 at 6:54 GMT on Wednesday morning, marking its fourth consecutive session drop and its longest losing streak since April.
A new more moderate Iranian president has given the West hope of a diplomatic resolution to tension over Iran's controversial nuclear program. Iranian President Hassan Rouhani has proved to be willing to resume talks with Western Diplomats in an effort to repair the nation's strained relationship with Western nations.
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CNBC reported that Rouhani recently offered an olive branch to US leaders, which has given the world hope that the two will come to an agreement regarding Tehran's nuclear development facilities. Despite promising words, some analysts say that such statements could be for posturing and that the two will not come to a real resolution any time soon.
Upcoming data from the US and China could mitigate some of the losses, but investors are cautious ahead of its release. Chinese factory output, retail sales and export data is all due this week, which most are expecting to point to a modest recovery in the world's second largest oil consuming nation.
Investors will also be watching for inventory data from the US which will give insight into the nation's current demand. Recent data from the American Petroleum Institute showed a 3.66 million barrel drop in crude stocks last week as refinery output increased. The US Energy Information Administration will release inventory data later on Wednesday which will give investors more insight.
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