Oil prices slumped 4 percent Wednesday, with U.S. crude headed for its sharpest daily loss since late May, on signs of progress in Iranian nuclear talks and after the first rise in crude stockpiles in the United States in more than two months.Earlier:
U.S. crude broke below its two-month trading band as an Iranian diplomat said technical experts from Iran and six world powers had finished a draft agreement on the country's nuclear program and foreign ministers would review it Thursday and Friday in Vienna.
U.S. crude futures closed down 4.2 percent, at $56.96 a barrel—the lowest since April 22. Front-month Brent crude futures were trading at $62 per barrel at, down $1.60 or 2.6 percent.
World powers and Iran held talks throughout Wednesday, extending an original June 30 deadline for a nuclear accord by a week.
"If the nuclear negotiations with Iran are brought to a positive conclusion, there is also the 'threat' of additional oil reaching the market from Iran," said Carsten Fritsch, analyst at Commerzbank....MORE
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