Oil prices rose on Tuesday, with Brent gaining for a fourth straight session, as the prospect of additional supply to the market from Iran fades with lingering talks about the United States to join a nuclear deal with Tehran.
Brent crude rose 17 cents, or 0.2%, to $ 73.03 a barrel at 3:47 a.m. GMT, after rising 0.2% on Monday. US oil gained 15 cents, or 0.2%, to $ 71.03 a barrel, after slipping 3 cents in the previous session.
Indirect talks between the United States and Iran, as well as other parties to the 2015 agreement on Tehran’s nuclear program, resumed in Vienna on Saturday and were called “intense” by the Union European. Read more
A US return to the deal would pave the way for the lifting of sanctions against Iran that would allow the OPEC member to resume crude exports.
It “seems increasingly unlikely that we will see the United States join the Iran nuclear deal before the Iranian presidential elections later this week,” ING Economics said in a note.
Other members of the Organization of the Petroleum Exporting Countries (OPEC) as well as major producers, including Russia – a group known as OPEC + – have suspended production to support prices amid the pandemic .
“Additional OPEC + supply will be needed in the second half of this year as demand is expected to continue to pick up,” said ING.
Still, prices had peaked earlier today, with US crude briefly stumbling into negative territory.
“Daily technical indicators are currently pointing to crude oil in overbought territory and a pullback may be due,” said Avtar Sandu, senior director of commodities at Phillip Futures.
Investors and traders are also monitoring the results of the US Federal Reserve’s meeting that begins later Tuesday for signals on when it will reduce monetary stimulus, he said.
The Fed is preparing to begin debating how and when to start scaling back a massive asset purchase program that has helped prop up the U.S. economy during the pandemic. Read more
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