Geopolitical Tension Eases And Oil Prices Drop
Brent crude oil was poised to end the week below $109 as easing geopolitical tension kicked some of the support out from under the commodity. Brent was trading at $109.04 at 7:00 GMT on Friday morning.
A resolution to the problems in Syria came into view after the US and Russia agreed on the terms of a plan to destroy Syria's chemical weapons supply. The icy relationship between the US and Russia has been on display the past few weeks as the two struggled to agree on how to proceed after a chemical weapons attack in Syria.
Oil prices also felt some pressure from progress between the US and Iran as the two discussed Iran's disputed nuclear program. Conflict between the two has elevated oil prices for almost 10 years, with sanctions keeping more than 1 million barrels per day of Iranian oil from the market.
Iranian President Hassan Rouhani recently agreed to talks with Western leaders in an effort to solve the problem diplomatically. The talks, which began on Thursday, are considered a major turning point in the US and Iran's troubled relationship.
The Iranian government has said it wants to see the matter resolved in as little as three months, but many analysts are skeptical of that timeline and say the sanctions are not likely to be lifted any time soon.
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