BLBG:WTI Crude Rebounds From 2013 Low; Iran Talks End Without Deal
West Texas Intermediate rose from its lowest level this year. World powers and Iran ended two days of talks without agreement on the country’s nuclear program.
Futures gained as much as 0.5 percent. Iranian nuclear negotiator Saeed Jalili said negotiations with the U.S. and its partners will resume next month in Istanbul as discussions in Almaty, Kazakhstan, concluded. Americans and others made no offer to ease oil or financial sanctions on Iran, said a U.S. official, asking not to be identified. Crude inventories climbed by 904,000 barrels last week to 373.4 million, the highest level since December, the American Petroleum Institute said yesterday.
“Although there are promises for another round of talks and statements on both sides seem to be putting a positive spin to the talks, there was no deal done,” said Amrita Sen, chief oil market strategist at consultant Energy Aspects Ltd. in London.
WTI for April delivery was at $92.86, up 23 cents at 10:49 a.m. London time in electronic trading on the New York Mercantile Exchange. The volume of all futures traded was 23 percent below the 100-day average. The contract slid 48 cents, or 0.5 percent, to $92.63 yesterday, the lowest close since Dec. 31. Prices have gained 1.1 percent this year and declined 5.2 percent this month.
Brent crude for April settlement on the London-based ICE Futures Europe exchange was up 31 cents at $113.02 a barrel. The volume of all futures traded was in line with the 100-day average for this time. The European benchmark grade was at a premium of $20.19 to WTI futures, up from $20.08 yesterday.
Turning Point
Iran’s Jalili called the two-day session a “turning point” and said a “more realistic and logical” proposal was made to Iran. He didn’t give details. Technical talks will be held in Istanbul on March 18, and political discussions with the so-called P5+1 -- the U.S., U.K., France, Germany, China and Russia -- will resume in Almaty on April 5, Jalili told reporters.
“The result of the discussions is yet another example in a series of postponements,” said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA in London. “Geopolitical tensions with Iran can easily flare up and boost the risk premium embedded in the oil price.”
The Energy Department’s statistics unit is scheduled to release its report at 10:30 a.m. in Washington. It may show that crude supplies climbed 2.5 million barrels to a seven-month high, and that gasoline stockpiles declined by 1 million barrels, according to a Bloomberg News survey.
WTI may rebound after the formation of a technical-reversal candlestick yesterday known as an “inverted hammer,” according to data compiled by Bloomberg. Futures also traded below the lower Bollinger Band for a fourth day before settling higher, signaling chart support where buy orders may be clustered. This indicator is around $92.43 a barrel today.
To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net
To contact the editor responsible for this story: Stephen Voss on sev@bloomberg.net
