Oil prices increase on concerns over Iranian Deal, Mexico Storm

May 24, 2021

421

Oil prices increased at the start of the weak amid impending storms in the Gulf of Mexico and concerns that Iran has announced the expiration of a three-month nuclear weapons deal, casting doubts about the future of indirect negotiations that could end US sanctions on Iranian crude oil exports.

July Brent crude rose 32 cents, or 0.5 percent, to $ 66.8/barrel at mid day, while West Texas Intermediate oil futures rose $ 63.9 a barrel in July, up 35 cents or 0.6 percent.

Oil prices had fallen last week after Iranian President Hassan Rouhani said the United States was ready to lift sanctions on the oil, banking and transportation sectors.

“Iranian oil production has increased in recent months, probably in anticipation of the lifting of sanctions,” analysts at ANZ Bank said on Monday.
Though, a three-month monitoring agreement between Tehran and the United Nations International Atomic Energy Agency had expired.

Meanwhile, the US National Hurricane Center (NHC) said last week that the low-pressure system over the western Gulf of Mexico has a 60% chance of becoming a hurricane in the next 48 hours. Moreover, the fears of rising coronavirus cases in Asia are limiting further price run as pent down demand expected from Asia.