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Crude Oil Slips as Iran Cooperates with UN

May 22, 2012 at 22:52 by Vladimir Vyun

Crude oil pulled back today after earlier advance as Iran reached an agreement with the International Atomic Energy Agency to allow the United Nations’ inspectors visit Iran’s nuclear facilities. Robert Wood, a US envoy to the international organizations in Vienna, commented on the accord:

We urge Iran to take this opportunity to resolve all outstanding concerns about the nature of its nuclear program. Full and transparent cooperation with the IAEA is the first logical step.

Concerns about sanctions against Iran were bullish for oil and now the commodity may lose that support.

On the other hand, the bearish story of the European crisis persists still. Traders are worried by the decline of Italy’s economy and speculation that Spain may the next country to request a financial aid. Oil loses appeal as one of the world’s biggest markets is constantly shaken by bad news and fear of the future.

July futures for delivery of crude oil dropped as much as $1.01 (1.1 percent) to $91.85 per barrel on NYMEX today. Brent grade of oil slipped from $109.17 to $108.25 as of 22:46 GMT on ICE.

If you have any questions and comments on the commodities today, use the form below to reply.

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