Crude oil falls as Iran negotiates nuclear programme

Iran today began talks with world powers over the future of its plans for nuclear energy that could see sanctions against the country lifted.

Iran entered negotiations with the US, Russia, China, the UK, Germany and France today in Geneva, as it bids to find a way forward in the stalemate over its nuclear programme that has lasted a decade.

Diplomatic relations between the US and Iran that were virtually non-existent for over thirty years, have begun to thaw recently, with new President Hassan Rouhani speaking on the telephone to President Obama last month.

Iran’s Deputy Foreign Minister Abbas said today's discussions had gone well and his opinion is that the proposal has the ‘capacity to make a breakthrough.’

While this is still very early on in the progress, hopes that this might be the first steps to letting Iranian oil flow back into the global market is pressuring the price of oil.

By mid-afternoon in New York, November US light crude futures had fallen 0.9% to $101.48 a barrel.

The price of crude has also not been helped by the latest twists in Washington, where hopes of a deal from the Senate have taken a bit of a knock from House Republicans attempting to cook up their own deal.

The competing deal from the House Republicans failed to garner enough support in a closed-door meeting though, but the draft plan has been taken as an attempt by House Republicans to derail the Senate proposal and raises the spectre of deep divisions continuing to cripple Congress.

Senate Majority Leader Harry Reid described the proposal as a ‘partisan attempt to appease a small group of Tea Party Republicans who forced the government to shut down in the first place’ and said that he was ‘very disappointed with [House Speaker] John Boehner who once again tried to preserve his role at the expense of the country.’

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