Oil rallies on weaker dollar and Iran supply uncertainty
Oil prices soared on Monday, gaining on a pause in talks to end U.S. sanctions on Iranian crude, and as the dollar retreated from two-month highs.
Brent crude for August gained 1.89% to settle at $74.90 per barrel. U.S. West Texas Intermediate (WTI) crude for July rose 2.82% to $73.66 per barrel.
Both benchmarks have risen for the past four weeks on optimism over the pace of global COVID-19 vaccinations and expected pick-up in summer travel. The rebound has pushed up spot premiums for crude in Asia and Europe to multi-month highs.
Bank of America said that Brent crude was likely to average $68 a barrel this year but could hit $100 next year on unleashed pent-up demand and more private car usage.
Oil was boosted by a weaker U.S. dollar, which can send speculative investors into greenback-denominated assets like commodities.
Negotiations to revive the Iran nuclear deal took a pause on Sunday after hardline judge Ebrahim Raisi won the country’s presidential election.
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