Oil near $74, Iran-EU nuclear talks postponed
LONDON, July 5 - Oil steadied just below $74 on Wednesday after crucial talks between OPEC producer Iran and the European Union, on incentives to end a stand-off over Tehran's nuclear programme, were suddenly postponed.
A row between Iran and the West over Tehran's atomic ambitions helped drive prices to a record $75.35 in April as investors feared potential supply disruptions from the world's fourth biggest crude exporter.
"From the oil market's perspective, the intensity of the confrontation has not changed," said Michael Wittner of Calyon investment bank.
"We're not closer to a resolution of the crisis, but it hasn't escalated. We're trapped in no man's land."
U.S. light crude was down 9 cents at $73.84 a barrel, lagging London Brent's loss of almost $1.00 in thin trading over NYMEX's two-day Independence Day closure on Monday and Tuesday.
Brent crude traded up 43 cents at $72.94 a barrel by 1249 GMT.
EU foreign policy chief Javier Solana had been due to meet Iranian nuclear negotiator Ali Larijani on Wednesday. They are now scheduled to meet in Brussels on Thursday and July 11.
Solana, surprised by Larijani's sudden postponement, made clear the West wants a quick answer on its incentives for Iran to halt uranium enrichment.
Lingering concern over Iran and still robust consumption in the United States and China, the world's biggest fuel burners, have put oil within striking distance of its earlier record.
NORTH KOREA LAUNCHES MISSILES
Wednesday also saw geopolitical tensions heightened after North Korea launched a series of missiles into the Japan Sea.
The missiles included a long-range one able to reach Alaska, although it apparently failed 40 seconds into its flight, U.S. officials said.
U.S. crude rallied more than $3 a barrel last week as U.S. drivers hit the roads for the summer holidays.
"After gasoline inventories began to fall last week the key focus is now where they go this week," said Gerard Burg, energy economist at the National Australia Bank.
"The market wants to see if stocks are adequate to get through the summer driving season, especially as supply could be disrupted by more hurricanes."
The next snapshot on U.S. fuel inventories will be released on Thursday, a day later than usual because of the Independence Day break.
Analysts expect to see a strong draw on stocks despite near-record prices. U.S. unleaded gasoline prices rose nearly 7 cents to average $2.93 a gallon last week, just below the record of $3.056, the Energy Information Administration said on Monday.
Providing some relief from supply concerns, Iraq said it planned to invite international oil companies to help develop its giant oilfields before the end of this year.
Iraq, home to the world's third-biggest oil reserves which are estimated at 115 billion barrels, needs up to $20 billion in foreign investment to boost production.
LONDON, July 5 - Oil steadied just below $74 on Wednesday after crucial talks between OPEC producer Iran and the European Union, on incentives to end a stand-off over Tehran's nuclear programme, were suddenly postponed.
A row between Iran and the West over Tehran's atomic ambitions helped drive prices to a record $75.35 in April as investors feared potential supply disruptions from the world's fourth biggest crude exporter.
"From the oil market's perspective, the intensity of the confrontation has not changed," said Michael Wittner of Calyon investment bank.
"We're not closer to a resolution of the crisis, but it hasn't escalated. We're trapped in no man's land."
U.S. light crude
Brent crude
EU foreign policy chief Javier Solana had been due to meet Iranian nuclear negotiator Ali Larijani on Wednesday. They are now scheduled to meet in Brussels on Thursday and July 11.
Solana, surprised by Larijani's sudden postponement, made clear the West wants a quick answer on its incentives for Iran to halt uranium enrichment.
Lingering concern over Iran and still robust consumption in the United States and China, the world's biggest fuel burners, have put oil within striking distance of its earlier record.
NORTH KOREA LAUNCHES MISSILES
Wednesday also saw geopolitical tensions heightened after North Korea launched a series of missiles into the Japan Sea.
The missiles included a long-range one able to reach Alaska, although it apparently failed 40 seconds into its flight, U.S. officials said.
U.S. crude rallied more than $3 a barrel last week as U.S. drivers hit the roads for the summer holidays.
"After gasoline inventories began to fall last week the key focus is now where they go this week," said Gerard Burg, energy economist at the National Australia Bank.
"The market wants to see if stocks are adequate to get through the summer driving season, especially as supply could be disrupted by more hurricanes."
The next snapshot on U.S. fuel inventories will be released on Thursday, a day later than usual because of the Independence Day break.
Analysts expect to see a strong draw on stocks despite near-record prices. U.S. unleaded gasoline prices rose nearly 7 cents to average $2.93 a gallon last week, just below the record of $3.056, the Energy Information Administration said on Monday.
Providing some relief from supply concerns, Iraq said it planned to invite international oil companies to help develop its giant oilfields before the end of this year.
Iraq, home to the world's third-biggest oil reserves which are estimated at 115 billion barrels, needs up to $20 billion in foreign investment to boost production.
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