Crude Futures Softer But off Worst Levels

Oil is softer to start the week, on track for the second straight session of decline; WTI is around $0.18 lower than settlement levels at $62.95/bbl, while Brent is $0.27 lower at $66.50/bbl. Oil dropped sharply at the open as risk aversion took hold in Asia, but gradually recovered from worst levels amid thin news flow. Markets assess progress made in US and Iran nuclear talks, with both sides saying talks were constructive and indicting movement in the right direction. The US still insists that the removal of any sanctions will only come once the US has "clarity and confidence" that the Islamic Republic will reduce its nuclear work, heavily curtail enrichment and atomic activity. Elsewhere, senior officials from Saudi Arabia and Iran are said to have been holding talks to repair relations.