Oil strikes 2018 highs on demand recovery, Iran nuclear talks

Reuters2021-06-28

* OPEC+ to meet on July 1

* OPEC+ discuss increasing supplies in August

SINGAPORE, June 28 (Reuters) - Oil prices climbed to highs last seen in October 2018 on Monday as the United States and Iran wrangled over the revival of a nuclear deal, delaying a surge in Iranian oil exports, while investors eyed the outcome of the OPEC+ meeting this week.

Brent crude for August had gained 22 cents, or 0.3%, to $76.40 a barrel by 0051 GMT while U.S. West Texas Intermediate crude for August was at $74.30 a barrel, up 25 cents, or 0.3%.

Oil prices rose for a fifth week last week as fuel demand rebounded on strong economic growth and increased travel during summer in the northern hemisphere, while global crude supplies stayed snug as the Organization of the Petroleum Exporting Countries (OPEC) and their allies maintained production cuts.

The producer group, known as OPEC+, is returning 2.1 million barrels per day (bpd) to the market from May through July as part of a plan to gradually unwind last year's record oil output curbs. OPEC+ meets on July 1 and could further ease supply cuts in August as oil prices rise on demand recovery.

"We expect the OPEC+ alliance will try to balance the market's need for more supply against the fragile nature of the recovery in demand, at next week's meeting," ANZ analysts said, adding that jet fuel demand recovery continued to be capped with the closure of international borders.

ANZ expect OPEC+ to increase output by about 500,000 bpd in August, which is likely to support higher prices.

Negotiations over the revival of Iran's nuclear deal are expected to resume in coming days. A monitoring agreement between Tehran and the U.N. nuclear watchdog lapsed last week.

A weaker U.S. dollar and a reversal of risk appetite in global markets also supported dollar-denominated commodity prices.

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精彩评论

  • TCX
    2021-06-28
    TCX
    To the moon
  • erichosk
    2021-06-28
    erichosk
    Oil will go much higher. Watch this YouTube for more info.https://youtu.be/gxg8cuNTU2g
  • pangoh
    2021-06-28
    pangoh
    [微笑] 
  • G3113
    2021-06-28
    G3113
    😊
  • JohnWL
    2021-06-28
    JohnWL
    Great
  • Youqian
    2021-06-28
    Youqian
    Nuclear is more dangerous 
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