Oil prices lost nearly three days including Friday as investors prepared for the return of Iran’s crude oil supply, after officials announced that Iran and world powers were making progress in the talks to revive the 2015 nuclear deal.
Brent crude oil futures for July rose 12 cents, or 0.2%, to $ 65.23 a barrel at 0401 GMT, while West Texas Intermediate (WTI) rose 23 cents, or 0.4%, to $ 62.17 a barrel for July.
On a weekly basis, however, both contracts dropped about 5% and are on track to announce the biggest weekly loss since March, after Iran said the US was ready to lift sanctions on its oil, banking and shipping sectors.
Iran and world powers have been holding talks since April to revive the agreement, and the European Union official who chaired the talks said he was confident that an agreement would be reached on Wednesday.
Significant progress appears to have been made in the ongoing nuclear negotiations in Vienna, and an additional 1 million barrels of Iranian oil per day has the potential to hit the market in the second half of the year.
Investors are optimistic about the recovery in fuel demand this summer. Vaccination programs in Europe and the United States will allow more people to travel, but increased cases in parts of Asia could reduce global consumption.
Some analysts speculate that Brent will close 2021 at $ 74, after last week’s surprisingly strong US inflation data. They express their opinion that it is moving towards $ 100 / barrel.
However, even a more aggressive increase in Iran’s production and exports than expected would be the limiting factor on the basis of reaching prices to $ 100 / barrel alone.
The demand for oil is rising to 95 million barrels a day, Abu Dhabi National Oil Company CEO Sultan Ahmed Al Jaber said on Thursday.
