Oil Barrel

Brent’s value increased today, after talks between Iran and six world powers failed to seal a deal on Tehran’s nuclear programme.

Brent, which edged up towards $106 a barrel, stood 40 cents higher at $105.52 per barrel, while US crude jumped five cents to reach $94.65 per barrel, reported Reuters.

Failed high-level talks conducted during the weekend at Geneva to ease international sanctions against Iran – which removed oil of more than one million barrels per day from world markets – are expected to tighten sanctions on Iran.

Geneva diplomats, however, are hopeful that a deal with Iran might be possible when negotiators resume lower-level talks on 20 November.

Prices were also impacted, as the value of the dollar got strengthened, owing to an increase in US jobs data on Friday.

In October, US nonfarm jobs increased by 204,000 despite a government shutdown that lasted 16 days, which is ahead of market expectations for a 125,000 increase.

Implied oil demand in China increased by 0.3% in October compared to 2012, after dipping the previous month in the first yearly decline in 17 months.

China’s fuel demand, which stood about 9.79 million barrels per day (bpd) in October against 9.76 million bpd in 2012, increased 1.9% from 9.61 million bpd in September.

Saudi Arabia’s cut in crude output from 10.1 million bpd in September to 9.75 million bpd in October also supported oil prices.

Following prevention of a tanker from loading 600,000 barrels of oil headed for Italy by protesters at the eastern port of Hariga on Friday, tensions seem to have worsened in Libya.

Image: Oil prices increased, as Iranian talks faltered. Photo courtesy of kjnnt / FreeDigitalPhotos.net.