Brent edges down on hopes of rise in Iran exports

January 16, 2014 - 12:06:03 pm

LONDON:  Brent crude slipped to $106 a barrel yesterday after hitting a two-month low as the prospect of a possible rise in Iranian oil exports weighed.

Investors looked ahead to weekly oil inventories data from the United States to assess shorter term supply.

“If the four million fall in API crude inventories is vastly different from the EIA then we may see prices move,” said Christopher Bellew, an analyst at brokerage Jefferies Bache in London.    

“WTI has become disconnected and represents very much the domestic prices in the US and Brent represents global demand and geo-political factors like potentially more Iranian exports.”  

February Brent crude was down 21 cents to $106.18 a barrel by 1330 GMT, after hitting its lowest level since November 12 at $105.80 a barrel.

US crude for February delivery rose 54 cents to $93.13 after settling up 0.86 percent in the previous session, buoyed by data from the American Petroleum Institute (API) on Tuesday.

“The blistering cold in the northern US last week could result in larger-than-expected draws on heating oil/distillates, whereas a build in crude and gasoline seems likely,” Michael Poulsen, oil manager at Global Risk Management, wrote in a daily note.