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NYMEX-U.S. crude edges up after Iran talks fail to reach deal

Sunday, 10 Nov 2013 | 7:46 PM ET

SINGAPORE, Nov 11 (Reuters) - U.S. crude futures were firmer in early Asian trade on Monday after meetings between Iran and six western nations failed to reach a deal on Tehran's nuclear programme.

But negotiators will resume talks on Nov. 20 after they were unable on Saturday to reach agreement on an initial proposal to ease international sanctions against Iran in return for restraints on its nuclear programme.

The sanctions have removed more than 1 million barrels per day of oil from world markets, and any increase in supply from Iran could push oil prices lower.

U.S. crude for December delivery was 12 cents higher at $94.72 per barrel at 0028 GMT. The contract had closed 40 cents higher on Friday. Brent was up 45 cents at $105.59 per barrel, after settling $1.66 per barrel higher on Friday.

FUNDAMENTALS

* OPEC heavyweight Saudi Arabia has cut back oil output that had held at record rates of around 10 million barrels a day for three months running to help offset a plunge in output from fellow OPEC member Libya.

* U.S. job growth unexpectedly accelerated in October as employers shrugged off a partial government shutdown, suggesting the economy was on firm footing and raising the prospect the Federal Reserve may soon decide to temper its bond-buying stimulus.

* An autonomy movement in eastern Libya said on Sunday it had formed a regional oil firm to start selling crude after seizing several ports, mounting a challenge to the government in Tripoli as it struggles to gain control of oil facilities.

MARKETS NEWS

* Asian shares edged away from a four-week low on Monday, and the dollar rose against the euro and yen as a surprise surge in U.S. jobs growth signalled the world's largest economy was on a firmer footing.

* Several oil tank cars that burst into flames after a train derailed in rural Alabama were expected to keep burning into Saturday, potentially reigniting the push for tougher regulation of the boom in moving oil by rail.

DATA/EVENTS

* The following data is expected on Monday:

- 0500 Japan Economy watchers survey

- 0900 Italy Industrial output

(Reporting By Jacob Gronholt-Pedersen; Editing by Ed Davies)