Oil prices drop after Iran nuclear deal

BANGKOK – Oil prices sank Monday as a nuclear deal between Iran and six world powers made it more likely that the sanctions choking Iranian oil exports will eventually be lifted.

Brent crude, a benchmark for international oils, was down $2.43 at $108.62 a barrel at midmorning Bangkok time in electronic trading on the ICE futures exchange in London.

Benchmark U.S. crude fell 85 cents to $93.99 on the New York Mercantile Exchange.


After marathon negotiations in Geneva, Iran on Sunday reached an agreement with the U.S., Britain, France, Russia, China and Germany to limit enrichment of uranium to 5 percent, far below the level needed for nuclear weapons.

Iran got limited relief from sanctions that have hobbled its economy, but an embargo on its oil exports remains in place while negotiations continue for a more enduring deal to ensure the country only uses nuclear technology for peaceful purposes such as power generation.

If Iranian oil returns to international markets, the additional supply is likely to make crude less expensive.

Benchmark U.S. crude is down from about $110 in October because of ample supplies and muted demand.

In other energy futures trading on Nymex:

— Wholesale gasoline dropped 4.6 cents to $2.665 gallon.

— Heating oil shed 4.8 cents to $2.991 a gallon.

— Natural gas added 7.7 cents to $3.845 per 1,000 cubic feet.

source: business.inquirer.net

Survey: U.S. gasoline prices drop 7 cents

(CNN) -- The average price for a gallon of regular U.S. gasoline slipped almost 7 cents over the past two weeks, chasing a drop in crude oil prices, according to a nationwide survey published Sunday.

A gallon of regular now costs $3.85 on average, the Lundberg Survey found. In the past month, average prices have fallen more than 12 cents.

"The price decline comes from lower crude oil prices," said publisher Trilby Lundberg.

That's good news for consumers, but it comes from a negative place, she said.

"Oil prices themselves are down because the oil market sees economic weakness in Europe and the United States, which is a negative for oil demand," said Lundberg.

The survey tabulates prices every two weeks at thousands of gas stations nationwide.

The average price nationally one year ago was just shy of $4 -- some 15 cents under the current average, Lundberg said.

The city with the lowest average price per gallon was Tulsa, Oklahoma, at $3.40. The city with the highest average price was Chicago at $4.32.

Here are prices in some other cities:

-- Atlanta: $3.68

-- Boston: $3.90

-- Denver: $3.82

-- Houston: $3.74

-- San Francisco: $4.21

source: CNN

Oil prices up in Asia as US-British crude pact denied

Singapore - Oil prices rose in Asian trade Friday after the US and Britain denied reports that the two countries had agreed to release strategic reserves of crude, analysts said.

New York's main contract, light sweet crude for delivery in April up 36 cents to $105.47 while Brent North Sea crude for May delivery gained 37 cents to $122.97 on its first trading day.

The White House confirmed the issue was discussed by US President Barack Obama and British Prime Minister David Cameron, but denied that there was a pact.

"I can tell you that among the many topics of discussion that the British prime minister and the president had were energy issues. And the situation globally with the rise in the price of oil," said White House spokesman Jay Carney.

"But I can say very clearly that the report suggesting that any kind of an agreement was reached on a course of action with regard to those energy issues, that any agreement was reached with a timetable associated with it, that report is false. It is not accurate."

Victor Shum, senior principal of Purvin and Gertz energy consultants in Singapore, told AFP: "Oil has been rebounding since that denial."

Crude prices -- which have risen in recent month amid concerns over a stand-off between the West and Iran -- had fallen by more than $2 in New York and more than $4 in London before the denial. — AFP

source: gmanetwork.com