Crude slipped as Iran agreed to let Western nuclear inspectors into the country, easing concern that the conflict over its atomic energy program would disrupt Mideast supplies.
Prices fell as much as 1.3% after Yukiya Amano, secretary-general of the International Atomic Energy Agency, announced the accord with Iran today in Vienna. The Organization for Economic Cooperation and Development said Europe's debt crisis risks spiraling and seriously damaging the world economy.
"The Iran agreement is certainly a positive step and is likely to result in continued relaxation of the Iran fear premium," said Kyle Cooper, director of commodities research at IAF Advisors in Houston. "Europe is still a big concern."
Oil for June delivery slid $1.07, or 1.2%, to $91.50/barrel (bbl) at 12:09 p.m. on the New York Mercantile Exchange. The contract expires today. The more actively traded July contract fell $1.08 to $91.78/bbl. Front-month futures are down 7.4% this year.
Brent oil for July settlement fell $0.51 to $108.30/bbl on the London-based ICE Futures Europe exchange.
The agreement between Iran and the IAEA will be signed "quite soon," Amano told journalists in Vienna after returning from Tehran, where the deal was reached yesterday.
Negotiators are set to head to Baghdad tomorrow for a second round of talks over Iran's nuclear program. The first discussions in 15 months between the U.S., the UK, France, China, Russia, Germany and Iran were held April 14 in Istanbul. . .View Full Article