Berita 24 English - Oil prices increased on Monday as a potential snag in reviving the 2015 Iran nuclear deal emerged, which could result i...
Berita 24 English - Oil prices increased on Monday as a potential snag in reviving the 2015 Iran nuclear deal emerged, which could result in increased oil supply, while Goldman Sachs stated that the case for higher prices remains intact even with increased Iranian exports.
Brent crude oil futures for July increased $1.25, or 1.9 per cent, to $67.69 a barrel by 0950 GMT, while US West Texas Intermediate futures were up $1.15, or 1.8 per cent.
To $64.73 a barrel.
To $64.73 a barrel.
Last week, oil prices fell nearly 3% after Iran's president, Hassan Rouhani, stated that the US was prepared to lift sanctions on the country's oil, banking, and shipping sectors.
However, the speaker of Iran's parliament announced on Sunday that a three-month monitoring agreement between Iran and the United Nations nuclear watchdog had expired. The watchdog's access to images taken inside some Iranian nuclear facilities would be revoked.
European diplomats warned last week that failure to agree on a monitoring deal extension would jeopardize wider, indirect talks between Washington and Tehran to reviving the 2015 Iran nuclear deal. These discussions are scheduled to resume this week in Vienna.
In 2018, former President Donald Trump withdrew the US from the deal and reinstated sanctions.
"Overall, it appears as though it is only a matter of time before the parties involved sign a new nuclear agreement," said Stephen Brennock of oil broker PVM.
"Investors are bracing for a new wave of Iranian crude, which will almost certainly be heavily discounted... Despite this alarmism, an aggressive increase in Iranian production and exports is unlikely to halt the decline in global oil stocks."
Even if Iran resumes exports, the case for higher oil prices remains intact due to an increase in global demand caused by vaccines, Goldman Sachs analysts said.
"Even if a restart occurs in July, we estimate that Brent prices will still reach $80 per barrel in the fourth quarter of 2021, with our new base case for an October restart supporting our $80 per barrel forecast for this summer," the bank wrote in a note.
