Brent crude fell below $108 a barrel on Monday and was headed for its first monthly decline since May, as tensions over Iran eased and a potential U.S. government shutdown clouded the outlook for demand.
The international benchmark was down nearly $1 under $108 a barrel, set for a 5.5-percent monthly drop. U.S. crude was down by more than $1 under $102 a barrel.
U.S. President Barack Obama and new Iranian President Hassan Rouhani spoke by telephone on Friday, the highest-level contact between the two countries in three decades as both sides seek to reach a deal over Iran’s nuclear programme.
Exports from Iran, one of the largest crude producers, have more than halved in recent years to around 1 million barrels per day in 2012 due to tightening sanctions. World powers are due to hold a new round of talks over Iran’s nuclear programme in mid-October in Geneva.
Supplies concerns have also eased in recent weeks as exports from Libya recovered to above 580,000 barrels per day, following weeks of disruptions.
The Iran Project is not responsible for the content of quoted articles