SULAIMANI (ESTA) — Oil prices fell on Thursday but stayed within the tight range set this week, with optimism about the summer driving season in the United States and Europe offsetting concerns on demand in India and a potential rise in Iranian supplies.
Brent crude futures dropped 41 cents to $68.51 a barrel at 0637, erasing Wednesday’s gain of 22 cents. U.S. West Texas Intermediate (WTI) crude fell 35 cents to $68.86 per barrel, after a rise of 14 cents on Wednesday.
“Most of the euro zone countries’ travel restrictions are lifted considering lower COVID-19 cases boosting demand,” head of currencies and commodities at Axis Securities Sunilkumur Katke told Reuters.
“However, the rise in cases across many Asian countries including India and the tighter lockdowns have capped a price rally,” he said.
“Iranian oil entering in the international crude market may take some more time and hence the prices are still holding firm in the short term.”
The markets remain focused on the Iranian nuclear talks and whether sanctions on its oil exports are lifted in full, and when, Reuters cited Citi analysts as saying.
Analysts said any increase of supply from Iran would only be gradual, with JPMorgan estimating Iran could add 500,000 bpd by the end of this year and a further 500,000 bpd by August 2022, according to Reuters.
