GO
Loading...

UPDATE 6-Brent oil rises as Iran talks end without deal

the Veterans Day holiday on Monday.
Monday, 11 Nov 2013 | 11:51 AM ET

* France says no Iran nuclear deal yet but "not far"

* China's implied oil demand up 0.3 percent in October

* U.S. oil inventory data delayed a day due to holiday

* Coming Up: U.S. Construction Spending at 1500 GMT

(New throughout, updates prices, changes dateline, pvs LONDON) NEW YORK, Nov 11 (Reuters) - Brent crude oil prices rose more than $1 per barrel on Monday after Iran and six world powers failed to reach a deal on Tehran's nuclear program. Sanctions against Iran have removed more than 1 million barrels per day (bpd) of oil from world markets, and any rise in Iranian supply could push oil prices lower, analysts say. Traders also covered short positions ahead of the Brent contract expiry on Thursday. Money managers cut their net long position for the second week in a row, government data showed on Friday. "Ultimately we were oversold," said Rich Ilczyszyn, chief market strategist at iitrader.com in Chicago. "We're getting close to expiration. If you're short, you have to buy it back." Brent was up $1.06 a barrel at $106.18 by 11:46 a.m. EST (1646 GMT), after touching a high of $106.40. The contract hit a four-month low on Friday and, despite rising to close the session up $1.66 per barrel, Brent ended with a fourth straight week of losses. U.S. crude was 68 cents higher at $95.28 a barrel, after closing up 40 cents on Friday. Brent's premium over U.S. oil futures <CL-LCO1=R>, widened trading at $10.89.

IRAN/CHINA SUPPORT Marathon talks between the United States, Russia, China, Britain, Germany, France and Iran ended in Geneva on Saturday failing to produce an agreement on Iran's nuclear program. France hinted the proposal under discussion did not sufficiently neutralise the threat of an Iranian nuclear bomb.

Negotiations will resume again on Nov. 20. U.S. Secretary of State John Kerry said on Monday he hoped to reach an agreement within months. British Foreign Secretary William Hague said there will be pressure to intensify sanctions on Iran if no nuclear deal is reached. Oil found some support from Chinese data pointing to higher fuel demand as the economy accelerates. China's implied oil demand inched up 0.3 percent in October from a year earlier. In Libya, tensions remained high after an autonomy movement in the east said on Sunday it had formed a regional oil firm to start selling crude after seizing several ports. Kuwait's oil minister, Mustapha al-Shamali, said on Saturday he expected the Organization of the Petroleum Exporting Countries to keep its output target unchanged. OPEC, which pumps more than a third of the world's oil, will meet on Dec. 4 in Vienna to decide its oil production policies.

U.S. OIL DATA DELAYED Key U.S. oil inventory data this week will be delayed a day Industry group the American Petroleum Institute will release oil inventory data on Wednesday at 4:30 p.m. EST and the U.S. Energy Information Administration will publish its data on Thursday at 11:00 a.m..

(Additional reporting by Christopher Johnson in London and Jacob Gronholt-Pedersen in Singapore; Editing by Marguerita Choy)