Reuters, SINGAPORE, June 28 – On Monday, oil prices rose to levels last seen in October 2018 as the US and Iran wrangled over the restoration of a nuclear deal, delaying a boom in Iranian oil exports, as investors awaited the conclusion of the OPEC+ summit later this week. By 0051 GMT, Brent crude had risen 22 cents, or 0.3 percent, to $76.40 a barrel, while U.S. West Texas Intermediate crude had gained 25 cents, or 0.3 percent, to $74.30 a barrel. Last week, oil prices rose for a sixth week as gasoline consumption rebounded in the northern hemisphere due to solid economic development and increased travel, while global crude supplies remained tight as the Organization of Petroleum Exporting Countries (OPEC) and its partners maintained output restrictions. From May through July, the OPEC+ producer group will restore 2.1 million barrels per day (bpd) to the market as part of a strategy to progressively unwind last year’s record oil output cuts. When OPEC+ meets on July 1, it is possible that production limits will be eased even more in August, as oil prices climb as demand recovers. find out more “At next week’s meeting, we expect the OPEC+ alliance to strive to balance the market’s need for greater supply against the fragile nature of the recovery in demand,” ANZ analysts said, adding that the recovery in jet fuel demand was still being capped by the closure of international borders. OPEC+ is expected to boost supply by around 500,000 bpd in August, according to ANZ, which will likely support higher prices. In the following days, talks on reviving the Iran nuclear deal are scheduled to continue. Last Monday, a monitoring agreement between Tehran and the United Nations’ nuclear watchdog expired. find out more Currency-denominated commodities prices were also helped by a lower US dollar (.DXY) and a reversal of risk appetite in global markets. Florence Tan contributed reporting, and Christopher Cushing edited the piece. The Thomson Reuters Trust Principles are our standards. Continue reading
