Oil prices fell in Asia today as euphoria over bullish US economic data quickly wore off and talks on Iran’s controversial nuclear programme entered a third day.
The US benchmark, West Texas Intermediate crude for January delivery, fell 27 cents to $95.17, while European benchmark Brent oil for January dropped 24 cents to $109.84.
Improving US jobless and manufacturing data buoyed the sentiment yesterday and boosted the Dow Jones share index past 16,000 for the first time, but the impact on oil prices was short-lived.
Kenny Kan, an analyst at CMC Markets in Singapore, said that the data showing an increase in US shale oil production indicated “a decent level of supply, which weighed on WTI crude prices’’.
“However, the (Thanksgiving) holiday season in the US is around the corner, which may provide some support to WTI crude prices as US demand picks up,” he added.
Talks are taking place in Geneva between six world powers and major oil producer Iran over its nuclear energy programme, which the West sees as a cover for weapons development.
Tehran, which denies the accusation, is complaining of “no progress” so far on narrowing considerable differences.
The meeting is third round of talks since President Hassan Rouhani was elected in June and are seen as the biggest hope in years in resolving the decade-old stand-off.