Oil prices fell in a narrow range on Thursday. In the United States and Europe, optimism about the summer season compensated concerns about the pandemic in India and the potential increase in Iranian supply.
Brent crude fell 29 cents, or 0.4%, to $ 68.58 at 0542 GMT, erasing Wednesday’s gain of 22 cents. Brent traded between $ 68 and $ 69 for most of this week.
West Texas Intermediate (WTI) crude oil fell 25 cents, or 0.4%, to $ 65.96 a barrel after a 14-cent increase on Wednesday, but still remains in the weekly range of $ 65-66.
Travel restrictions in most eurozone countries have been lifted as declining COVID-19 cases are thought to increase demand. However, the increase in cases and tighter lockdowns in many Asian countries, including India, limited the price increase.
It may take some more time for Iranian oil to enter the international crude oil market, so prices are still strong in the short term.
Markets are focused on whether and when sanctions on Iran’s nuclear negotiations and oil exports will be lifted.
At the meeting of the Organization of Petroleum Exporting Countries and its allies on June 1, producers will have to consider whether they will change their plans to alleviate production limits for Iranian supply. OPEC + is expected to adhere to plans for 700,000 barrels a day in June, but the group has plans to increase another 840,000 barrels in July.
Analysts say Iran’s increase will only be gradual, and it is estimated that it could add 500,000 barrels a day by the end of this year and another 500,000 barrels a day by August 2022.
While the market was supported by a larger-than-expected drop in US oil stocks on Wednesday, there are still concerns about a contraction in demand in India, the world’s third largest oil consumer.
However, demand concerns in India are not thought to derail the narrative of improving global oil demand.
