Oil turns higher amid fears of stalled US-Iran negotiations

Oil drilling rigs

Oil prices closed higher today, May 19, amid concerns that the nuclear negotiations between the US and Iran may stall, offsetting the effects of Moody's downgrade of the US's credit rating.

Brent crude futures for July delivery rose 0.20%, or 13 cents, to $65.54 a barrel. WTI crude futures for June delivery rose 0.32%, or 20 cents, to $62.69 a barrel.

Iranian Deputy Foreign Minister Majid Takht-e Ravanchi said in televised remarks today that nuclear talks between his country and the US will lead nowhere if Washington insists on Tehran suspending its uranium enrichment activities.

These statements undermined hopes of reaching an agreement that would pave the way for the lifting of US sanctions on Iran and increase in Tehran's supply of black gold to global markets.

Oil gains today were capped by Moody's decision late last week to downgrade the US credit rating due to financial pressures stemming from high public debt levels, raising investor concerns about the economic growth prospects of the world's largest oil consumer.

Moreover, official data released today showed a slowdown in industrial production and retail sales growth in China, the world's largest oil importer.