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Commodities: Crude dips below $99

Date: Tuesday 31 Jan 2012

Commodities: Crude dips below $99

Crude oil futures settled lower for the second consecutive session as progress on Greece debt talks made little progress and as Iran gave permission for the UN's chief nuclear inspector to start a three day visit to discuss the nation's nuclear programme.

The International Atomic Energy Agency (IAEA) chief inspector Herman Nackaerts said that talks were long overdue.

"We are trying to resolve all the outstanding issues with Iran," he said.

Last year the nuclear watchdog accused Iran of developing a nuclear weapons programme. Iran, which has always denied the allegations, surprised markets with its willingness to open up talks with the West.

Meanwhile European leaders met in Brussels shortly after Greece said it would not accept budgetary supervision in order to receive further financial aid. Progress on talks to restructure Greece's debt have been frustratingly slow and fears the Europe's unresolved debt crisis will weigh on oil demand, bubbled to the surface again on Monday.

Crude for March delivery settled 78 cents lower at $98.78 a barrel on the New York Mercantile Exchange.

Brent crude on the ICE futures exchange declined 71 cents to $110.75. a barrel.

Among precious metals gold lost its allure as the dollar's strength outshone demand for its safe haven qualities.

Gold for April delivery settled down $1 at $1,734.40 an ounce on the Comex division of the New York Mercantile Exchange.

March silver eased 26 cents to end at $33.53 an ounce. Copper for March dropped 6 cents to $3.83 a pound.

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