Oil eases back below $64

Oil dipped back below $64 a barrel on Wednesday as traders await the debate among members of the U.N. nuclear watchdog over Iran's atomic work.

Prices have fallen for eight straight sessions to the lowest mark in almost six months after Iran sounded a softer note on its nuclear plan, OPEC agreed to keep supplies steady and BP raised hope for a quicker resumption of Alaskan supplies.

U.S. light crude for October delivery was down 11 cents at $63.65 a barrel by 8:17 a.m. after sliding to $63.60, the lowest level since March 23. London Brent crude was down 13 cents at $62.86.

The market seems to be in a freefall and picking the bottom is anybody's guess. But I would think that this price fall is just a steep correction as I would expect demand to return after the autumn lull in the winter, said Tony Nunan, a risk manager with Mitsubishi Corp. in Tokyo.

I think the geopolitical issues, Iran included, could still flare up again in the near future. Iran is still an issue and the situation in Nigeria is another.

Most members of the 35 nation International Atomic Energy Agency's governing board, a gauge of world sentiment on Iran, are likely to champion talks to defuse a row over Iran's nuclear work in a debate later on Wednesday, diplomats say.

But they are expected to tread cautiously in the debate, which is balanced between diplomatic progress and confrontation.

Weekend talks at which diplomats said Iran offered to consider temporarily halting uranium enrichment were viewed as reviving hopes for averting sanctions and the risk of economic and security repercussions, but Washington denied on Tuesday that Tehran had made such an offer.

Oil dipped back below $64 a barrel on Wednesday as traders await the debate among members of the U.N. nuclear watchdog over Iran's atomic work.

Prices have fallen for eight straight sessions to the lowest mark in almost six months after Iran sounded a softer note on its nuclear plan, OPEC agreed to keep supplies steady and BP raised hope for a quicker resumption of Alaskan supplies.

U.S. light crude for October delivery was down 11 cents at $63.65 a barrel by 8:17 a.m. after sliding to $63.60, the lowest level since March 23. London Brent crude was down 13 cents at $62.86.

The market seems to be in a freefall and picking the bottom is anybody's guess. But I would think that this price fall is just a steep correction as I would expect demand to return after the autumn lull in the winter, said Tony Nunan, a risk manager with Mitsubishi Corp. in Tokyo.

I think the geopolitical issues, Iran included, could still flare up again in the near future. Iran is still an issue and the situation in Nigeria is another.

Most members of the 35 nation International Atomic Energy Agency's governing board, a gauge of world sentiment on Iran, are likely to champion talks to defuse a row over Iran's nuclear work in a debate later on Wednesday, diplomats say.

But they are expected to tread cautiously in the debate, which is balanced between diplomatic progress and confrontation.

Weekend talks at which diplomats said Iran offered to consider temporarily halting uranium enrichment were viewed as reviving hopes for averting sanctions and the risk of economic and security repercussions, but Washington denied on Tuesday that Tehran had made such an offer.