Iran: Nuclear awaits for oil retreat investors

oil pulled back after hitting fresh multi-year highs on Monday, as investors awaits on the outcome of this week’s talks between iran and world over nuclear deal which is expected to boost crude supplies.

The Brent crude futures for August fell 66 Cents, or 0.9% to $ 71.27 a barrel by 0645 GMT, after hitting $72.27 their highest since May 2019. Avtar Sandu, a senior commodities Manager at Phillips future in Singapore said that “Investors  may have sold off some contracts to take profits when WTI hit $70”. He also added “The primary concern is about Iranian barrels coming back into the market but I don’t think there will be a deal before the Iranian Presidential Election.

There’s a data which showed that there is a round of 14.6% of year on year drop in China’s crude oil imports in May on Monday which also has a weighed on price. There’s a slowdown in talks  between global powers and Iran in reviving a 2015 nuclear deal an dropped in U.S. rig count  that supported oil prices.

Global oil demand is expected to rise its supplies in second half despite of a gradual easing of supply of OPEC+ producers said by the analyst.

Thus, CMC Markets analyst Kelvin Wong said that U.S oil drillers are less enthusiastic in adding more U.S oil production and hence reduces the risk of supply glut in the global oil market in H2 2021.

Iran is expected to enter into fifth round of talks with the global powers that can result in US lifting sanctions imposed on Iran.

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