Light oil price up above $67 on dollar dip, Iran talks

NYMEX light oil prices rose above $67 on Wednesday trading, recouping day ago losses as the US dollar dipped against the euro and resource currencies like the Australian dollar, while eyes are on talks over Iran’s nuclear plans.

Prices fell on Tuesday due to builds in US crude oil and distillates stocks, a downgrade to energy demand and low consumer confidence data, which continued a string of bearish signals that has put crude oil on course for its first quarterly fall this year.

And on Thursday, diplomats from the five permanent UN Security Council members and Germany will meet Iran’s nuclear negotiator, the first talks on Tehran’s disputed atomic programme in more than a year, as the White House weighed sanctions targeting the Islamic republic’s reliance on gasoline imports and insurance firms that underwrite the trade.

US Light crude oil futures rose 45 cents to $67.16 a barrel by 0638 GMT after shedding 13 cents on Tuesday. London Brent crude gained 41 cents to $65.90 a barrel. “Looking at the fundamentals, it is not justifiable for prices to be at current strong levels” said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd, adding that investment funds took the view that $60 oil was cheap.

Tags:  dollar, light oil price