Oil jumps to highest level in more than 2 years
Oil prices edged higher on Tuesday after the top U.S. diplomat said that even if the United States were to reach a nuclear deal with Iran, hundreds of U.S. sanctions on Tehran would remain in place.
That could mean additional Iranian oil supply would not be re-introduced into the market soon.
Brent crude settled 73 cents, or 1%, higher at $2.22 per barrel. U.S. West Texas Intermediate oil advanced 1.18%, or 82 cents, to $70.05 per barrel.
Barriers to the revival of Iran’s nuclear deal remain ahead of talks due to resume this week between Tehran and world powers, four diplomats, two Iranian officials and two analysts said.
Crude prices have risen in recent weeks, with Brent up by nearly 40% this year and WTI gaining even more, amid expectations of demand returning as some countries succeed in vaccinating populations against COVID-19.
Restraint on supply by the Organization of the Petroleum Exporting Countries and allies has also helped buttress prices.
Meanwhile, U.S. crude inventories have been drawing down and were forecast to drop for a third straight week, analysts said in a poll ahead of industry data from the American Petroleum Institute at 4:30 p.m. EDT (2030 GMT), followed by the government’s report on Wednesday. [EIA/S]
Reference: CNBC
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