SULAIMANI (ESTA) — Oil prices rose on Tuesday as the prospect of extra supply coming to the market soon from Iran faded with talks dragging on over the U.S. rejoining a nuclear agreement with Tehran.
Brent crude was up 25 cents at $73.11 a barrel by 0634 GMT, having risen 0.2% on Monday. U.S. oil gained 24 cents to $71.12 per barrel, having slipped 3 cents in the previous session.
The European Union described as “intense” indirect discussions between the U.S. and Iran, along other parties to the 2015 nuclear deal, which resumed on Saturday, Reuters reported.
It is “looking increasingly unlikely that we will see the U.S. rejoin the Iranian nuclear deal before the Iranian presidential elections later this week,” Reuters quoted ING economics as saying.
Other members of the Organization of Petroleum Exporting Countries (OPEC) along with major producers including Russia – a group known as OPEC+ – have been withholding output to support prices amid the pandemic.
“Additional supply from OPEC+ will be needed over the second half of this year, with demand expected to continue its recovery,” ING told Reuters.
