Nuclear talks with Iran: Day 2 sends current crude oil prices up

Oil prices went up Thursday following announcements from Washington D.C. that talks with Iran regarding issues with its nuclear program could have a positive outcome. Iran and participating countries are entering the second round of talks, and Washington’s comment has somewhat allayed fears of an impending oil supply crisis.

On the other hand, the euro crisis has yet to be resolved. Europe’s officials have already outlined its emergency programs to be implemented once Greece gives up on the euro.

Meanwhile, the U.S. crude oil price per barrel is higher by $0.65 as it settled to $90.55.  ICE Brent crude prices per barrel also inched up by $0.92 increment, closing at $106.48.

The talks in Baghdad allowed U.S., EU, and other countries to discuss the disputed nuclear plans with Iran.  A day before the Baghdad meeting, Yukiya Amano, Director General of the International Atomic Energy Agency reported that Iran agreed to formalize its consent to open its nuclear facilities for further investigation by U.N. representatives. Current crude oil prices slightly decreased as news reached the market.

Regarding Greece and its bail-out scheme, German Chancellor Angela Merkel stressed her desire for the country to remain within the euro zone, although she reminded that Greece must comply with its obligations in lieu of the financial assistance that it will receive.

EU officials also encouraged Greece to continue implementing austerity measures and changes spelled out in the plan.

Crude supply in the U.S. continued to rise in the past week largely due to weak demand for fuel. Based on reports issued by the Energy Information Administration, last week’s crude supply went up to 883,000 barrels; though this was a little lower than projected.

The World Bank encouraged China to implement policies that could fan consumption to help increase aggregate economic activity. The Bank, however, lowered the country’s 2012 expected growth to 8.2 percent.

Home sales in the U.S. showed a good start last month as revealed by an upward trend on prices. Meanwhile, in currency markets, the euro was on a two-year low versus the U.S. dollar and may go down further due to Greece’s possible euro exit.