The spread between West Texas Intermediate and Brent traded at the lowest intraday level in 10 days after crude inventories shrank for the first time in 11 weeks in the U.S., the world’s biggest oil consumer.
Iran’s pledge to restrict nuclear work in return for loosened economic sanctions may have a limited effect on crude prices, said analysts who called today’s 2.7 percent slump in Brent a “knee-jerk” reaction.
Brent crude led energy prices from gasoline to heating oil lower after Iran and world powers reached an interim accord on the country’s nuclear program that will ease economic sanctions while keeping a cap on oil sales.
Gold traded near a four-month low as the accord between Iran and world powers damped demand for haven assets, while holdings in exchange-traded products extended declines. Silver sank to the lowest in more than 15 weeks.
Gold traded near a one-week low as investors weighed the outlook for monetary stimulus before the Federal Reserve releases minutes of its last meeting and a report that may show U.S. consumer prices stagnated last month.
Following are comments from Jonathan Barratt, managing director at Commodity Broking Services Pty. in Sydney, on the outlook for a Group of 20 farm ministers meeting in Paris today. He spoke to Linzie Janis on Bloomberg Television’s “First Look.”