Oil swings with recession fears, Iran talks dominating market - BNN Bloomberg

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Oil pared early losses on Wednesday after China signaled it would take steps to boost a flagging economy, as traders awaited further news about the potential resumption of the Iran nuclear deal.

West Texas Intermediate futures edged higher to US$86.91 a barrel after dropping to a fresh seven-month low, while Brent continues to trade above US$92 a barrel.

“Recession fears are the main driver along with the lack of liquidity - we’ve seen traders, fund managers, speculators all pulling out,” Luke Longhurst, head of fuel at brokers Freight Investor Services said by phone. Additional supply could heap more pressure on prices as concerns over an economic slowdown cloud the demand outlook. Time spreads have narrowed significantly, signaling an easing of tight crude markets.

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