Oil fell a second day after the first international talks in 15 months on Iran’s nuclear program yielded an agreement to reconvene in May.
Futures declined as much as 0.9 percent in New York after sliding 0.5 percent last week.
United Nations Security Council members including the U.S., U.K., China, France and Russia plus Germany will meet Iranian delegates in Baghdad on May 23 following “constructive” talks in Istanbul on April 14, the European Union’s foreign policy chief said yesterday. Oil has advanced this year on concern that tension with Iran will disrupt global supplies.
Crude for May delivery slipped as much as 97 cents to $101.86 a barrel in electronic trading on the New York Mercantile Exchange and was at $101.97 at 3:17 p.m. Singapore time. The contract fell 0.8 percent to $102.83 on April 13, the lowest close since April 11. Prices are up 3.2 percent this year.
Brent oil for June settlement dropped $1.39, or 1.2 percent, to $119.82 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract’s front-month premium to New York-traded West Texas Intermediate was at $17.34, compared with $19 on April 13.
Technical Analysis indicates that WTI Crude Oil price is forming a flag pattern. The price is supported at $100.45 level which is the rising trendline on Daily timeframe and previous low. Alternatively, any further upside could potentially be capped by $104.61 level which is 20/50 Day SMA followed by $ 106.00 which is the falling resistance trendline. Only the significant breakout higher and the daily close above $ 106.00 could target previous highs of $110.50 dated in February.
