Market Overview

Brent Above $109 As Doubts About US/Iran Relationship Surface

Share:
Brent Above $109 As Doubts About US/Iran Relationship Surface

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.

Related: Market Primer: Wednesday, September 25: Investors Hesitant, US In Focus

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.

Posted-In: American Petroleum Institute Barack Obama Energy Information AdministrationNews Commodities Forex Global Markets Best of Benzinga

 

Related Articles (BNO + BROAD)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Euro Slips On Weaker Than Expected German Data

US Stock Futures Drop Ahead Of New Home Sales, Durable Goods Data