Oil prices fell today as investors await data from China and the US to gauge demand outlook in the leading oil consuming countries.
Brent crude dropped by 35 cents to $109.22 a barrel, while US oil was down by 13 cents to $99.75, reported Reuters.
Investors are waiting for China’s trade and US oil inventories data, which are scheduled to be released later today and Wednesday respectively.
Oil prices are under pressure as investors believe that easing geopolitical tensions over Iran’s nuclear programme would increase supply from the OPEC producer as Tehran reach a final deal with world powers.
The UN nuclear agency said that Iran has agreed to alleviate concerns that it may have worked on designing an atomic weapon.
On 18 February, Iran and six world powers are set to start a final round of discussions to reach a broader diplomatic settlement with the Islamic state.
On Friday, there was sharp rally in gasoline and heating oil prices as supplies tightened and refiners started to shut down plants for maintenance.
Oil also rose as investors overlooked low US non-farm payroll data to focus on a frigid winter that has boosted oil products demand.
Crude received some support as Buzzard, Britain’s biggest oil field, is set to undergo a total nine weeks of maintenance, rather than the two weeks traders had expected.
Image: Easing geopolitical tensions over Iran’s nuclear programme weighed on oil prices. Photo: courtesy of Victor Habbick.