UPDATE 7-Brent falls on strong dollar, Iran talks; spread narrows
* West seeks first-step deal with Iran in Geneva talks
* ECB cuts rates to new low
* U.S. dollar strengthens
(Updates prices, changes byline, dateline, pvs LONDON)
NEW YORK, Nov 7 (Reuters) - Brent crude oil futures fell to a fresh four-month low on Thursday, pressured by a strong dollar, plentiful supplies and continued progress in talks between Iran and the West over Tehran's disputed nuclear program.
So far this week, Brent was down 2 percent, on track for its fourth straight weekly decline. Its premium over West Texas Intermediate, the U.S. oil benchmark, also narrowed.
A move by the European Central Bank to cut interest rates to a record low boosted the dollar, making dollar-denominated crude more expensive for buyers outside the United States.
The dollar rose more against the euro and yen after the U.S. Commerce Department said U.S. economic growth accelerated more than expected in the third quarter.
The spread between Brent and U.S. crude narrowed by more than $1 during the session, in what analysts said could also be a currency play.
"You might see Brent drop quicker and further because Brent is generally traded in euros, and they have an easy money policy," said Rich Ilczyszyn, chief market strategist at iitrader.com in Chicago.
Brent was down $1.41 at $103.83 a barrel by 11:56 a.m. EST (1656 GMT). U.S. oil slipped 49 cents to $94.31 a barrel.
Brent's premium over WTI <CL-LCO1=R> was last trading at $9.47 per barrel, after narrowing from the previous session's settlement by as much as $1.29 to $9.15 earlier in the session.
Iran and six world powers are making progress in talks aimed at ending a decade-long nuclear stand-off between Tehran and the West, but the discussions are "tough", Iran's foreign minister said on Thursday.
"The weak euro and stronger dollar are obviously in play, and it looks like these Iran talks are going to cement a deal," said Phil Flynn, an analyst with the Price Futures Group in Chicago, Illinois.
Although both sides in the Iran negotiations say an agreement is far from certain, Iran's Foreign Minister Mohammad Javad Zarif said a deal is possible "if everybody tries their best".
Investors will watch U.S. nonfarm payroll data on Friday to gauge when the Federal Reserve might begin winding down its $85 billion-a-month bond-buying program.
(Additional reporting by Peg Mackey in London, Manash Goswami in Singapore; editing by Keiron Henderson, Jane Baird and David Gregorio)