SINGAPORE: Brent futures edged up towards $106 a barrel in Asia on Monday after Iran and six world powers failed to reach a deal on Tehran's nuclear programme, while data showed a slight rise in implied fuel demand in China.
High-level talks in Geneva at the weekend to ease international sanctions against Iran in return for restraints on its nuclear programme had been watched closely by traders.
The sanctions have removed more than 1 million barrels per day of oil from world markets, and any increase in supply from Iran could push oil prices lower, analysts say.
The sides seemed on the verge of a breakthrough before cracks materialised among US and European allies as French Foreign Minister Laurent Fabius dismissed the plans as a "fool's game" of one-sided concessions.
While US lawmakers on Sunday aimed to tighten sanctions on Iran, diplomats in Geneva said a deal was still possible. Negotiators will resume lower-level talks on Nov. 20.
"This just shows that it's going to take a while for any agreement to be reached," said Tony Nunan, an oil risk manager at Mitsubishi Corp. in Tokyo.
"Unless we see any breakthrough in talks, I don't expect a big impact on oil markets." Brent was 40 cents higher at $105.52 per barrel at 0230 GMT.
The contract hit a four-month low on Friday, and despite rising to close the session up $1.66 per barrel, Brent ended with its fourth straight week of losses.
US crude was 5 cents higher at $94.65 per barrel, after closing up 40 cents on Friday.
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