Singapore: Oil prices fell on Monday, extending steep losses from the previous session, as Iran and six world powers tried to reach a deal that could add oil to the market if sanctions against Tehran are lifted.The two sides tried to break an impasse in nuclear negotiations on Sunday ahead of a deadline to find a preliminary agreement by Tuesday, exploring compromises in a number of areas.Brent crude oil prices fell below $56 a barrel on Monday, extending steep losses from the previous session.
A cut in production, which some OPEC members have lobbied for, could lead to higher prices, but its biggest exporter Saudi Arabia has resisted.
‘‘Saudi Arabia had to cut its price in Asia to ensure its crude oil remained attractive,” energy consultancy Wood Mackenzie said. “Other suppliers looking to position themselves in Asia will have to pay close attention to the Saudi’s pricing strategy,” it added. This would also include Iran should sanctions be eased.
Brokerage Phillip Futures said that it expected oil prices to fall further in the second quarter, which begins in April.