Oil edges up as Iran nuclear talks drag on

Reuters2021-06-21

* Iran elects hardline judge Raisi as president

* Iran nuclear talks paused after election

SINGAPORE, June 21 (Reuters) - Oil prices nudged up on Monday, underpinned by strong demand during the summer driving season and a pause in talks to revive the Iran nuclear deal that could indicate a delay in resumption of supplies from the OPEC producer.

Brent crude futures for August gained 30 cents, or 0.4%, to $73.81 a barrel by 0051 GMT, while U.S. West Texas Intermediate $(WTI)$ crude for July was at $71.96 a barrel, up 32 cents, or 0.5%.

Both benchmarks have gained for the past four weeks amid optimism over the pace of global vaccinations and a pick up in summer travel. The rebound has already pushed up spot premiums for crude in Asia and Europe to multi-month highs.

"The rebound in demand in the northern hemisphere summer is so strong that the market is becoming increasingly concerned about further sharp drawdowns on inventories," ANZ analysts said in a note.

Negotiations to revive the Iran nuclear deal took a pause on Sunday after hardline judge Ebrahim Raisi won Iran's presidential election amid a low turnout on Saturday. Two diplomats said they expected a break of around 10 days.

ANZ said the election could delay the nuclear deal.

"The possibility of Iranian oil hitting the market in the short term looks unlikely," the bank said, adding that Iran is insisting that U.S. sanctions placed on Raisi be removed before an agreement is reached.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • etjj
    2021-06-21
    etjj
    [Surprised] 
  • Susubing
    2021-06-21
    Susubing
    good
  • 仁毅
    2021-06-21
    仁毅
    Amazing
  • kfkb
    2021-06-21
    kfkb
    .
  • chelvi
    2021-06-21
    chelvi
    Great 
  • Csm
    2021-06-21
    Csm
    Wow
Leave a comment
46