Oil prices fall prior to IAEA and OPEC meetings

07-Mar-06

World oil prices fell before two key meetings this week in Vienna : of IAEA on Iran's nuclear program and the other of OPEC members to discuss production levels. New York's main contract, light sweet crude for delivery in April, slid to US$63.42 per barrel on Monday and in London, the price of Brent North Sea crude for April delivery slipped to US$63.82 per barrel. International Atomic Energy Agency (IAEA)'s meeting will consider an IAEA report that says Iran is defying its calls to halt uranium enrichment and to cooperate fully with agency inspectors. The issue could open the door to possible UN Security Council action against Iran, and if Iran is sent to the Security Council, the country will cut crude supply as a signal. At another gathering in Vienna, the Organisation of the Petroleum Exporting Countries is to preparing to set crude production levels on Wednesday. OPEC is widely expected to keep its production quota at 28 million bpd, where it has been for the past eight months, despite some disagreement amongst member nations.