LONDON: Brent crude oil stabilised around US$80 a barrel yesterday as world powers extended talks with Iran over its nuclear programme, maintaining sanctions and preventing an immediate increase in Iranian oil supply to world markets.
The decision came ahead of a key meeting of Opec to discuss production in response to a collapse in oil prices.
British Foreign Secretary Philip Hammond said the talks between Iran and six world powers had made clear progress and would resume next month. Negotiators had until June to come up with a comprehensive deal.
Iran has reduced its stockpile of low-enriched uranium gas and taken other actions to comply with the terms of last year’s interim nuclear agreement.
Brent was trading at US$80.00 a barrel, down 36 cents, by 1440GMT. The contract hit a one-week high of US$81.61 on Friday. US crude was also down 15 cents at US$76.36.
Oil prices have fallen 30 percent since June, with Brent plunging from a high above US$115 and US crude from above US$107.
Ministers from the Organization of the Petroleum Exporting Countries meet on November 27 and may decide to cut output.
Fund managers say oil prices could plunge to $60 a barrel if the OPEC fails to make significant cuts to reduce an oversupply on world markets.
“The longer the price stays weak, the more amicable Opec members will be to follow a collective course of action that involves cutting,” said Harry Tchilinguirian, senior oil strategist at French bank BNP Paribas. Reuters