Prices fell on reports that Russian Ambassador to the United Nations Mikhail Ulyanov said significant progress had been made, but the losses came to a halt after he said on Twitter that negotiators needed more time to finalize an agreement.
After falling more than $ 2 a barrel, Brent crude stabilized at 75 cents, or 1.1%, at $ 68.71 a barrel at 1:19 p.m. EDT (5:19 GMT). U.S. West Texas Intermediate (WTI) crude stabilized 78 cents, or 1.2%, at $ 65.49.
If the United States lifts sanctions on Iran, the country could increase oil shipments, adding to the global supply.
“It could put a significant amount of crude oil on the market, which is why we’re steadily drifting down now,” said Bob Yawger, director of energy futures at Mizuho.
During the session, global benchmark Brent oil hit $ 70 a barrel for the first time since March, on expectations of a pick-up in demand.
Britain eased coronavirus restrictions further on Monday and Europe is starting to reopen cities and beaches. New cases in the United States have declined further and New York has lifted the mask requirement for those vaccinated.
“The story of the recovery in demand for crude in the second half of the year still supports much higher oil prices by the end of the year, with this news from Iran potentially reducing most analysts’ year-end goals by a few dollars, ”said Edward. Moya, Senior Market Analyst at OANDA Futures Brokerage.
European and American progress in the fight against the pandemic contrasts with the situation in Asia, which limits the oil rally.
Singapore and Taiwan have reinstated lockdowns and India has seen a drop in demand for fuel after placing restrictions to curb infections.
Also weighing in on the market, analysts predict U.S. crude inventories rose 1.6 million barrels last week, according to a Reuters poll ahead of the American Petroleum Institute’s weekly reports at 4:30 p.m. ET and the government on Wednesday morning. .