SULAIMANI (ESTA) — Oil prices fell on Monday in see-saw trading, with some investors taking profits after signs of progress in the U.S.-Iran nuclear talks while others kept bullish sentiment bolstered by rising consumption amid ongoing supply constraints.
Brent crude was down 2 cents at $92.29 a barrel by 0937 GMT, after earlier touching its highest price since October 3, 2014.
U.S. West Texas Intermediate (WTI) crude fell 47 cents to $90.86 per barrel, having dived to as low as $91.35 earlier in the session and risen to as high as $92.73.
Both benchmarks rose more than $2 on Friday, extending their rally into a seventh week on ongoing worries about supply disruptions fueled by political turmoil among major world producers.
“Investors scooped up short-term profits on the news suggesting progress in the U.S.-Iran nuclear talks, but fresh buying kicked in again after the technical corrections as global supply is expected to stay tight,” Reuters quoted Tatsufumi Okoshi, a senior economist at Nomura Securities, as saying.
U.S. President Joe Biden’s administration on Friday restored sanctions waivers to Iran to allow international nuclear cooperation projects, as the talks on the 2015 international nuclear deal enter the final stretch, according to Reuters.
If the United States lifts sanctions on Iran, the country could boost oil shipments, adding to global supply.
“Investors expect more twists and turns in the U.S.-Iranian talks and no agreement to be reached anytime soon,” said Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd.
