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OIl markets keep close eye on Obama and Rouhani
The eyes of the world are fixed on the United Nations Headquarters in New York. It will be one of the most pivotal General Assembly meetings in recent history and could have a huge impact on the oil markets.
US President Obama and Iranian President Hassan Rouhani will both speak at assembly, just days after Rouhani said he would be willing to negotiate with the West about it's nuclear program in exchange for an easing of sanctions.
There has been talk the two could hold talks on the sideline, if so it would be the highest-level direct US-Iranian talks since the Iranian revolution of 1979.
Saxo Bank's, Head of Commodity strategy, Ole Hansen says it is still "very early" days to speculate about the return of Iranian oil but if “the momentum” towards dialogue continues then, the world could see a near-term future where supplies rise faster than demand.
Iran has the world's fourth largest oil reserves, meaning a return of iranian oil would have an immense impact on the global supply. Overall, Hansen believes that if the Iran crisis is solved, we could see oil drift back down to the USD100 level.
Brent crude oil fell below $108 a barrel on Tuesday, losing more ground after almost a month of falls as geopolitical tension eased and further evidence emerged of rising oil supplies.
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