Oil prices drop on news of possible Iranian nuclear agreement

Friday, 15 Nov 2013 | 11:49 AM ET

NEW YORK, Nov 15 (Reuters) - Oil futures turned lower on Friday on reports that Western powers may reach a "first step" nuclear agreement with Iran as early as next week.

European Union and Iranian officials are expected to meet next Wednesday in Geneva to negotiate with other world leaders following on Thursday and Friday.

U.S. oil futures were trading 6 cents lower at $93.70 11:40 a.m. EST (1640 GMT) after trading as high as $94.55 earlier in the session. Brent oil was down 40 cents at $107.88 per barrel, after trading as high as $108.65.

Sanctions against Iran because of its nuclear program have kept some 1 million barrels of oil off the global market. Any agreement among nations could mean sanctions will be lifted, increasing market supply and depressing prices.

(Reporting By Jeanine Prezioso; Editing by David Gregorio)