Oil recovers ground amid skepticism over Iran deal

Oil recovers ground amid skepticism over Iran deal

Oil prices had a second consecutive session of increases this Thursday, due to low-priced purchases, good news about demand in the United States and skepticism about an agreement with Iran for its nuclear program.

(UN Secretary General asks to tax record profits of oil companies).

The price of a barrel of Brent from the North Sea for delivery in October gained 3.13% at $96.59 in London. While the barrel of West Texas Intermediate (WTI) for delivery in September rose 2.71% at $90.50 in New York.

“There was a correction for a week and a half and yesterday’s report (Wednesday, on US reserves, which showed a sharp drop in stocks) was the opportunity to start again,” said Stephen Schork, analyst and author of the Schork Report.

(This year there would be 5 increases in fuel prices).

Some traders bought as a barrel of WTI closed Tuesday at the lowest in nearly seven months, before the Russian invasion of Ukraine. US demand for crude soared nearly 9% in a week.

For Edward Moya, from Oanda, some robust macroeconomic indicators published this week “promoted optimism about an increase in the demand for crude oil.”

(Two former presidents of Reficar are sentenced to more than 5 years for corruption).

“The market had begun to integrate the possibility of an agreement” about Iran’s nuclear program “but the lack of new information made traders more skeptical,” TD Securities’ Bart Melek said in a note.

The European Union and the United States have been studying Iran’s response to the document sent by the EU since Tuesday. If an agreement is reached, if the sanctions on Iranian oil fall, the market would have a major producer back in the game and would increase the world supply of crude. “The next news” about these negotiations “will dictate the direction of oil prices,” concluded Stephen Schork.

AFP

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