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NYMEX crude oil weakens in early Asia trade, focus on Iran talks

Published 11/20/2013, 07:23 PM
Updated 11/20/2013, 08:01 PM
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Investing.com - Crude oil prices eased in Asia early Thursday with a continued focus on talks over Iran's nuclear program and related sanctions imposed by Western countries.

On the New York Mercantile Exchange, light sweet crude futures for delivery in January traded at USD93.67, down 0.20%, in a range of 93.59 - 93.83.

On the horizon Thursday in Asia is the closely watched HSBC November flash purchasing managers index for China, forecast to come out at 50.8, easing from 50.9 for the final in October at 0945 local time (0145 GMT). China and India are the world's top gold importers.

Also ahead is a Bank of Japan policy announcement at 1230 local time (0330 GMT) with the benchmark rate forecast stable at 0.10%. BoJ Governor Haruhiko Kuroda will hold a news conference at 1530 local time (0630 GMT).

Overnight, oil prices see-sawed in trade, ending up largely on positive inventory data out of the U.S., but talks among Western delegates and Iran to close the latter's alleged nuclear weapons program will come to fruition wiped out gains. The commodity hit a session low of USD93.26 and a high of USD94.48 on Wednesday.

Light, sweet crude for December delivery, which expired Wednesday, fell to USD93.33 a barrel on the New York Mercantile Exchange, while the January contract declined to USD93.85 a barrel.

Brent crude for January delivery on ICE Futures Europe climbed 1.1% to USD108.06 a barrel.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 375,000 barrels in the week ended Nov. 15, below expectations for an increase of 900,000 barrels.

Total U.S. crude oil inventories stood at 388.5 million barrels.

In Geneva, talks among the U.S., Russia, China, Britain, Germany, France and Iran opened with hopes building that progress will be made to dismantle Tehran's nuclear program.

A deal would resume the flow of Iranian crude into global markets and lower prices, as trade sanctions slapped on Iran due to its alleged nuclear ambitions have taken out more than 1 million barrels per day of oil from the global market.

Elsewhere, the Federal Reserve released the minutes of its October policy meeting earlier in which monetary authorities said conditions warranting a decision to taper asset purchases may arrive in the coming months.

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