SINGAPORE: Brent crude futures dropped towards $106 per barrel on Tuesday, as investors eyed the next round of talks on Iran's nuclear programme and possible economic reforms to be announced by Chinese leaders later in the day.
Following unsuccessful talks between Iran and world powers at the weekend, US Secretary of State John Kerry said he hoped an agreement would be signed within months, while London and Tehran revived diplomatic ties.
The failure to reach a deal pulled Brent away from a four-month low hit last week to settle above $106 per barrel on Monday. At 0340 GMT, Brent for December delivery was 22 cents lower at $106.18 per barrel. US crude was down 27 cents at $94.87 per barrel.
"At least for now, the idea that Iranian oil will return to global market is off the table," said Chee Tat Tan, investment analyst at Phillip Futures in Singapore.
In a sign it is willing to grant concessions, Iran said on Monday it will grant UN inspectors "managed access" to a uranium mine and a heavy-water plant.
But concern is growing among US lawmakers and a pro-Israel group that Washington may be giving away too much in negotiations with Tehran.
"We still see big challenges in reaching a deal. The United States is under political pressure, and Iran doesn't seem to be giving too much," Tan said.
Talks between Iran and Western powers will resume on Nov. 20.
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