Oil dips below US$107 on news of meet between Iran and six world powers

28-Mar-12

Asia saw oil prices fall below US$107 on news of an agreement to meet on April 13 between Iran and six world powers- United States, Britain, France, Germany, Russia and China. News of this meeting has spread optimism of a negotiated resolution to the current dispute over Iran’s nuclear program. Brent crude for May delivery dipped to US$125.5 per barrel in London. Rising crude inventories in developed countries and quickening inflation and weaker consumer demand caused by soaring fuel costs could also bring oil prices lower, as per Morgan Stanley. Saudi Arabia has pledged to increase production to replace Iran's lost output, but that would leave little global spare capacity, Citigroup said.