Oil prices rise by more than $ 1 as potential talks with Iran hang
Oil prices rose on Monday as a potential problem emerged in the relaunch of the 2015 Iran nuclear deal that could increase oil supply, while Goldman Sachs said the case for a hike prices remained intact even with an increase in Iranian exports.
Brent crude oil futures for July rose $ 1.25, or 1.9%, to $ 67.69 a barrel at 9:50 a.m. GMT, while US West Texas Intermediate for July was at $ 64.73 per barrel, up $ 1.15 or 1.8%.
Oil prices fell nearly 3% last week after Iranian President Hassan Rouhani said the United States was ready to lift sanctions on his country’s oil, banking and maritime sectors.
However, the speaker of the Iranian parliament said on Sunday that a three-month monitoring agreement between Iran and the UN nuclear watchdog had expired and that its access to images from inside some Iranian nuclear sites. would cease.
EU diplomats said last week that failure to agree on an extension of the surveillance deal would plunge wider indirect talks between Washington and Tehran over relaunching the 2015 Iran nuclear deal into crisis. . These talks are due to resume in Vienna this week.
Former President Donald Trump withdrew the United States from the deal in 2018 and reimposed the sanctions.
“Overall, it seems like it’s only a matter of time before the parties involved put their pen to paper on a new nuclear deal,” said Stephen Brennock of oil broker PVM.
“Investors are bracing for a new wave of what will surely be the highly discounted Iranian crude … but despite all this alarmism, an aggressive surge in Iranian production and exports is unlikely to block the decline in global stocks. of petroleum “.
Even with a potential rebound in Iranian exports, the case for higher oil prices remains intact due to increased global demand for vaccines, Goldman Sachs analysts said.
“Even aggressively assuming a reboot in July, we estimate that Brent prices would still hit $ 80 per barrel in Q4 2021, with our new baseline scenario for an October reboot still supporting our forecast of $ 80 per barrel for this. summer, ”the bank said. in a note. Read more
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