Oil rises after Iran nuclear talks stall

SINGAPORE – Oil prices rose in Asian trade Monday, Novermber 11, after gruelling meetings in Geneva aimed at convincing Iran to halt its disputed nuclear program failed to result in an agreement, analysts said.

New York’s main contract West Texas Intermediate (WTI) for December delivery was up 7 cents to $94.67 in mid-morning trade, while Brent North Sea crude for December rose 38 cents to $105.50.

“We see no breakthrough in the nuclear talks held between Iran and the 6 powers in Geneva last week,” Teoh Say Hwa, head of investment at Phillip Futures in Singapore, told AFP.

“This has deferred concerns over the influx of Iranian oil into global markets, hence supporting crude oil prices,” she said.

Diplomats on Sunday insisted they were closing in on agreement to curb Iran’s nuclear program despite the failure to clinch a long-sought deal in marathon negotiations in Geneva.

The Islamic republic has been crippled by a series of UN and US sanctions aimed at bringing an end to its nuclear drive, which the West claims is being used to develop atomic weapons. Iran denies the assertion.

The so-called P5+1 group of major powers — Britain, France, the United States, Russia, China plus Germany — plan to meet again with Iranian delegates on November 20 with the hope of securing a short-term deal that would freeze the country’s nuclear activities while both sides work on a comprehensive agreement.

Meanwhile, oil prices were also supported by strong US job and economic growth figures that topped forecasts and signalled a possible recovery in the world’s biggest economy following months of languid growth, Teoh Said.

The US Labor Department’s highly anticipated October jobs report released Friday showed the world’s largest economy added a surprising 204,000 jobs, more than double the average analyst estimate, despite a 16-day partial federal government shutdown.

The Commerce Department’s third-quarter GDP advanced estimates came in at an annual rate of 2.8%, well above the 1.9% projected by analysts. – Rappler.com