Brent steady at $120 ahead of Iran talks; Fed comments weigh

Wed Apr 11, 2012 11:54pm EDT
 
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By Manash Goswami

SINGAPORE (Reuters) - Brent crude held steady at $120 on Thursday as supply disruption worries eased with Iran saying it would present new proposals in the upcoming nuclear talks with world powers, reversing some of the previous session's gains.

Prices were also under pressure following comments by top U.S. Fed officials that the central bank is still waiting to see if more monetary stimulus is needed, and on resurfacing worries about Spain's fiscal woes. These factors overshadowed an unexpected drop in U.S. oil product stocks.

Brent crude fell 1 cent to $120.17 a barrel by 11:28 p.m. Eastern Time, after touching a low of $119.93 earlier in the session. Brent settled 30 cents higher at $120.18 on Wednesday.

U.S. oil fell 11 cents to $102.59, after gaining $1.68 in the previous session.

"At the end of the day, Iran is also worried about its exports, about being able to do business with other countries. They need to maintain their budget, otherwise they cannot survive," said Tetsu Emori, a Tokyo-based commodities fund manager at Astmax Investments.

"There is worry on the demand side as well, especially after last week's U.S. jobs data."

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For a 24-hr technical outlook on Brent:   Continued...

 
Gas prices are shown at a gas station in Beverly Hills, California May 20, 2008. REUTERS/Lucy Nicholson