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2 Apr 2015
Oil prices drop as Iran nuclear talks continue
FXStreet (Mumbai) - Oil prices at both the sides of the Atlantic fell as the talks between big global powers and Iran over its nuclear program have been extended way beyond the self imposed deadline of March. 31.
At the time of writing, Brent Crude for May delivery was down to USD 55.60/barrel, while WTI Crude was down to USD 48.92/barrel.
Iran is hoping for a deal that will end economic sanctions, and open doors for it to sell millions of barrels of oil, some of it stored at sea in supertankers and ready for delivery. Iranian Foreign Minister Mohammad Javad Zarif said "significant progress" had been made, but more discussions were needed to reach a deal on how to resolve a 12-year standoff over Tehran's nuclear ambitions.
However, experts doubt the deal would be reached. In the meantime, a recovery in the US dollar against major currencies in the mid-European session also added to the bearish pressure on Crude prices.
Brent Crude Technical Levels
The immediate support is located at 55.00, under which prices could test 54.50 levels. On the flip side, a break above the 100-DMA at 56.47 could drive the prices higher to the daily high of 57.24.
At the time of writing, Brent Crude for May delivery was down to USD 55.60/barrel, while WTI Crude was down to USD 48.92/barrel.
Iran is hoping for a deal that will end economic sanctions, and open doors for it to sell millions of barrels of oil, some of it stored at sea in supertankers and ready for delivery. Iranian Foreign Minister Mohammad Javad Zarif said "significant progress" had been made, but more discussions were needed to reach a deal on how to resolve a 12-year standoff over Tehran's nuclear ambitions.
However, experts doubt the deal would be reached. In the meantime, a recovery in the US dollar against major currencies in the mid-European session also added to the bearish pressure on Crude prices.
Brent Crude Technical Levels
The immediate support is located at 55.00, under which prices could test 54.50 levels. On the flip side, a break above the 100-DMA at 56.47 could drive the prices higher to the daily high of 57.24.