Monday, 25 November 2013 11:51

Easing sanctions on Iran ?

free 9969271Yesterday after  foreign ministers from the U.S., Europe, China and Russia made unscheduled trips to Geneva  the third round of talks in six weeks  reached to a conclusion. 

The deal releases some of Iran’s oil assets.
“Sanctions have been hitting Iran oil dramatically. There is hope that in the long term the supply dynamics will improve. High commodity prices are one of the key costs to businesses and consumers so a decline in oil equates to lightening up the tax burden.”

says Henk Potts, strategist at Barclays Wealth & Investment Management in London  

Crude oil prices are affected?

Shares of major oil-producing companies were the only component of Europe’s benchmark Stoxx 600 to decline, with BG Group Plc and BP Plc driving the segment lower.
Sanctions remain on sales of Iranian refined products, while Iran gains access to $4.2 billion in oil revenue frozen in foreign banks, the White House said.
The EU will continue to prohibit crude imports from Iran. 

Brent crude tumbled 1.8 percent to $109.06 a barrel at 10:45 a.m. in London, heading for the biggest decline in three weeks.  

Brent crude for January delivery was down $2.25, or 2% at $108.80 a barrel on ICE Futures Europe. U.S. crude-oil futures were down $1.42 at $93.42 a barrel on the New York Mercantile Exchange

“Oil prices will remain under pressure for the foreseeable future,” says Jonathan Barratt in Sydney.

 

source: Bloomberg