Iran Blinks on Uranium, Nov Oil Drops to $90

Oil fell for a second day in New York after Iran reiterated an offer to suspend domestic production of medium-enriched uranium before European officials meet to discuss tighter sanctions on the Persian Gulf country.

Futures slid as much as 1.1 percent to the lowest level in almost a week. Iran is ready to enter talks about its nuclear program in exchange for guaranteed supplies of 20 percent-enriched uranium for its Tehran Research Reactor, said Ramin Mehmanparast, a Foreign Ministry spokesman, according to a Press TV report on 14 October. The European Union has reached a preliminary agreement to intensify sanctions to increase pressure on OPEC’s third-largest oil exporter to curb its nuclear program, EU diplomats with knowledge of the matter said.

Crude for November delivery fell as much as $1.04 to $90.82 a barrel in electronic trading on the New York Mercantile Exchange and was at $91.11. The contract declined 0.2 percent on Oct. 12 to $91.86. Prices are down 7.8 percent this year.

Brent oil for November settlement on the London-based ICE Futures Europe exchange lost as much as 77 cents, or 0.7 percent, to $113.85 a barrel. The more actively traded December future was down 56 cents at $113.05. The European benchmark was at a $22.94 premium to New York-traded West Texas Intermediate grade, up from $22.76 on Oct. 12.

Oil Demand

Shipments have been “stable” in recent months, said Mohammad Ali Khatibi, Iran’s governor to the Organization of Petroleum Exporting Countries, according to the Tehran-based Donya-e-Eqtesad newspaper on 14 October. He denied that overseas sales dropped last month.

China Purchases

Crude imports by China, the world’s second-biggest oil consumer, slid 1.8 percent in September from a year earlier to 20.08 million metric tons, according to data from the Beijing-based General Administration of Customs on Oct. 13. Purchases were up 9.1 percent from August, its website showed.