London: Oil prices dropped on Monday ahead of fresh international talks over Iran’s nuclear programme which could result in a further easing of supply worries despite tensions over Libya, analysts said.
New York’s main contract, West Texas Intermediate for delivery in December, fell 28 cents to $93.56 a barrel.
Brent North Sea crude for January shed 68 cents to stand at $107.82 a barrel in London early afternoon deals.
“Brent has fallen back ... as talks resume between Iran and the world powers over the Tehran nuclear dispute this week, with hopes that an agreement will lead to a rise in oil supply,” said Lucy Sidebotham, an analyst at British energy consultancy Inenco.
“A large rise in Saudi exports for the third quarter has also pushed prices lower, with their export levels at a record eight-year high.”
She added: “The spread between WTI and Brent widened further to over $14 a barrel last week with the rise in US stockpiles ... However prices are still being supported by on-going tensions in Libya, which has cut supply since July, and the likelihood that the US will keep their bond buying stimulus programme for now.”
Negotiations between Iran and the so-called P5+1 - Britain, France, the United States, Russia and China plus Germany - restart in Geneva on Wednesday after the last round failed to seal a deal.
Top diplomats said that they were coming close to an interim agreement under which Iran, a huge producer of oil, curb or freeze parts of its nuclear programme for some relief from crippling sanctions.
Israel and the West suspect Iran is pursuing a nuclear weapons capability alongside its uranium enrichment programme, which Tehran insists is entirely for peaceful purposes.
Meanwhile in crude exporter Libya, troops were deployed in Tripoli on Monday after militias were ordered to leave the capital following deadly weekend clashes sparked by a protest against the former rebels in Libya’s 2011 revolt.
