Oil prices ease after Iran talks open

SINGAPORE: Oil prices eased in Asia Thursday after talks between Iran and world powers on its disputed nuclear programme opened in Geneva, while signs of rising US demand failed to boost New York’s main contract.

West Texas Intermediate crude, with the new January contract falling 21 cents to $93.64, while the European benchmark Brent oil for January dropped 28 cents to $107.78.Tan Chee Tat, an investment analyst at Phillip Futures in Singapore, said the prospect of a deal with Iran was putting pressure on prices.

"It seems not conclusive as of now but most Americans support a deal between Iran and the six powers," he told."This generates positive sentiment. New sanctions are unlikely to be imposed, so concern over Iranian crude going into the market adds pressure to oil prices.

"The P5+1 group of Britain, China, France, Russia and the United States plus Germany wants Iran to suspend certain parts of its nuclear energy programme, which the West suspects to be a cover for weapons development. Iran denies the accusation.