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  • Business - Market Data
  • Updated: May 25, 2021

Oil Prices Extend Gains As Fears Of Iranian Exports Ease

Oil Prices Extend Gains As Fears Of Iranian Exports Ease

Oil prices rose on Tuesday, posting the biggest two-day gain since march as increasing demand spurred optimism among traders that the market would be able to accommodate any fresh flows from Iran should the nation’s nuclear deal be revived.

A decline in deaths due to COVID-19 in India also bolstered expectations that oil demand could rise in the coming weeks.

West Texas Intermediate traded above $66 a barrel after rallying more than 6 percent in the previous two sessions. Brent crude oil futures settled up $2.02, or 3 percent, at $68.46 a barrel.

Iran and the U.N. nuclear watchdog are extending a recently expired monitoring agreement by a month, both sides said on Monday, avoiding a collapse that could have pitched wider talks on reviving the 2015 Iran nuclear deal into crisis.

Talks between Iran and world powers will continue in Vienna this week to resolve outstanding issues on the accord, which may pave the way for the removal of U.S. sanctions on Iranian crude flows.

Goldman Sachs said the case for higher prices remained intact even with a potential increase in Iranian exports. Its new base case for an October restart still supports an $80 per barrel forecast for this summer, it added.

Oil remains on course for another monthly gain in May — the fourth out of five this year — as investors wager demand will pick up in the U.S., Europe, and China as the pandemic eases.

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