Oil prices slipped today ahead of recommencement of talks between Iran and major powers over nuclear programmes, as oil traders believe that a positive outcome from talks will release Iranian oil onto the market.

Brent crude dropped by 34 cents to hit $108.16 a barrel, while US crude was down by 34 cents to settle at $93.50, reported Reuters.

Prices dropped as six world powers including the UK, China, France, Germany, Russia and the US are meeting Iran later this week, which could possibly lead to an initial agreement over Iran’s nuclear programme.

"Investors anticipated that any agreement among nations could mean sanctions will be lifted, and the Iranian oil will flood the market, adding to the already abundant supply."

Investors anticipated that any agreement among nations could mean sanctions will be lifted, and the Iranian oil will flood the market, adding to the already abundant supply.

French President Francois Hollande reassured President Shimon Peres and Prime Minister Benjamin Netanyahu on Sunday that any deception on Iran’s part following the signing of a nuclear agreement with the six world powers would result in the renewal of economic sanctions.

However, supply concern from Libya continues, as the country has witnessed a sharp drop in its oil exports in recent days following the abduction of the country’s deputy intelligence chief.

The US Commodity Futures Trading Commission (CFTC) revealed that money managers cut their net-long US crude futures and options positions in the week to 12 November for continues second week.

Nri