Tuesday, November 26, 2013

Oil prices dip after Iran nuclear deal boosts expectations of increased petroleum supply

By business reporter Elysse Morgan
Global oil prices dropped overnight in the wake of the nuclear deal with Iran.
While Wall Street saw a fairly lacklustre end to trade, it still managed another record high.
The Dow Jones Industrial Average gave up most of its earlier gains to close just eight points higher at 16,104.
The Nasdaq rose above 4,000 for the first time during trade, but closed just below that up three points to 3,994.
Energy stocks weighed on trade, with the nuclear deal with Iran expected to make it easier for the country to export more of its oil.
The United States and other world powers have agreed to ease trade sanctions on Iran in return for limits on its uranium enrichment program.
It could greatly increase global supplies over time, as Iran holds the world's fourth-largest oil reserves.
West Texas crude ended trade down almost 1 per cent at $US93.92 a barrel.
Singapore's Tapis crude closed at $US119 a barrel in yesterday's trade and is expected to fall today.
Wall Street was barely changed by some mixed data released overnight.
The National Association of Realtors' Pending Home Sales Index, which records the number of sales contracts on established homes hit a 10-month low in October, which is the fifth straight month of decline.
However this was offset by a strong rebound in services sector, according to new data from research firm Markit.
Across the Atlantic markets closed higher, London's FTSE 100 added 0.3 per cent to 6,694, as investors were also buoyed by the Iran deal, although energy stocks fell.
Germany's DAX set a new record overnight, closing at 9,300 after adding 0.88 per cent during trade, with shares in airlines and French car makers boosting trade.
The Australian dollar continues to lose ground against a strengthening greenback and at 9am (AEST) was buying 91.58 US cents.
The price of spot gold recovered some recent falls overnight and was worth $US1,251 an ounce.

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