LONDON AFX - World oil prices fell to the lowest points since late March today owing to easing concerns over Iran, while markets awaited a likely output-freeze by the OPEC oil-producing cartel.
At 12.45 pm, Brent North Sea crude for October delivery shed 94 cents to 64.39 usd. It had struck an intra-day low of 64.33 usd - the lowest point since March 28 and more than 14 usd below an all-time high 78.64 usd struck on Aug 7.
Meanwhile, New York's main contract, light sweet crude for delivery in October, dropped 98 cents to 65.26 usd, after striking at intra-day low of 65.22 usd earlier - the lowest point since March 28.
Traders remained heavily focused on Iran, the world's fourth biggest producer of crude.
Top Iranian nuclear negotiator Ali Larijani has offered a two-month suspension of uranium enrichment but did not say if this would be done in time to start talks to resolve the Iranian nuclear crisis, an EU diplomat has said.
Larijani made the offer during talks in Vienna Sunday with European Union foreign policy chief Javier Solana, the diplomat said.
Six world powers have offered Iran talks on a package of trade and other benefits if it suspends uranium enrichment, which makes nuclear reactor fuel but also atom bomb material, and threatened UN sanctions if Tehran did not comply.
Analysts warn Iran could retaliate to sanctions by disrupting its oil exports.
Tony Nunan, the manager for energy risk management at Mitsubishi Corp. in Tokyo said talk of possible suspension of uranium enrichment was the key reason behind Monday's fall in oil prices.
"It could just be small talk but it means the absence of (price supportive) news," he said, referring to possible UN sanctions.
Prices were also easier in view of a mild US hurricane season and a recent announcement by British energy giant BP that production at the Alaskan Prudhoe Bay facility could be fully restored by the end of October, dealers said.
An August pipeline leak forced BP to shut down much of its production at the vast oil field, sparking a temporary oil price rally.
Meanwhile, ministers of the 11-member Organisation of Petroleum Exporting Countries, which provides about a third of global oil supplies, were going into a Monday meeting in Vienna signalling they would maintain the cartel's official output ceiling 28 mln bpd against the backdrop of falling oil prices.
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