Oil falls after Iran hints at monitoring, not action

Keep a close eye on oil prices

Oil prices are flirting with the November low of $73.25 after comments from Iran once again hinted at no OPEC action tomorrow. WTI is down 1% to $73.33.

Iranian Oil Minister Bijan Zangeneh said on Wednesday he had an “excellent” meeting with Saudi Oil Minister Ali al-Naimi and that their positions were now “very close”.

“(There is) unity inside OPEC that we should monitor the market carefully and to react at the convenient time for managing the market,” Zangeneh said.

Reuters also reported on other comments from leading OPEC members suggest the cartel is willing to deal with lower prices in order to washout US shale production.

“Some OPEC members believe that this is the time where we need to defend market share … All the experts in the market believe we have oversupply in the market and next year we will have more oversupply,” Zangeneh added.

Look for stops below $73.25.