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Crude falls as Iran talks make progress

Published 04/15/2012, 08:11 PM
Updated 04/15/2012, 08:14 PM
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Investing.com - Crude oil futures fell in Asian trading Monday after talks to end a nuclear standoff between the West with Iran made progress, with all sides agreeing to meet again in May.
 
On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at USD102.83 a barrel, down 0.47%, off from a session high of 103.25 and up from an earlier session low of USD102.81.
 
Oil prices have surged this year due to geopolitical tensions with Iran.
 
The West accuses Iran of developing a nuclear weapons program, a charge Iran denies.
 
Sanctions have already begun to curb Iranian crude exports, and Tehran has said it might deprive the world of supply by closing the Strait of Hormuz, a narrow waterway connecting oil-rich Persian Gulf nations with the world.
 
Talks to ease the standoff are wrapping up in Turkey, and delegates from the U.S., U.K., China, France, and Russia and Germany will meet with an Iranian team in Baghdad, Iraq, on May 23 to resume talks.  
 
Slower growth in China continued to pressure oil down on Monday was well.
 
In China, the country's gross domestic product grew 8.1% in the first quarter, below expectations for 8.3% growth and well beneath the fourth quarter's 8.9% expansion.
 
Concerns the European debt crisis is set to heat up anew also sent oil prices falling.
 
Yields have been rising in Spanish government bond auctions, sparking fears the crisis has moved from Greece to the larger Spain.
 
Reports that European representatives will ask the International Monetary Fund  to boost its war chest to battle the crisis stoked fears as well.
 
On the ICE Futures Exchange, Brent oil futures for June delivery were down 0.77% and trading at USD120.45 a barrel, up USD17.62 from its U.S. counterpart.





 

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