SULAIMANI (ESTA) — Oil prices rose on Monday, underpinned by strong demand during the summer driving season and a pause in talks to revive the Iran nuclear deal.
Brent crude futures gained 29 cents to $73.80 a barrel by 0658 GMT, while U.S. West Texas Intermediate (WTI) crude was at $71.92 per barrel, up 28 cents.
“The rebound in demand in the northern hemisphere summer is so strong that the market is becoming increasingly concerned about further sharp drawdowns on inventories,” Reuters quoted ANZ analysts as saying.
Talks to revive the Iran nuclear deal took a pause on Sunday after hardline judge Ebrahim Raisi won the country’s presidential election, according to Reuters.
Two diplomats told Reuters that they expected a break of around 10 days.
Analysts said the election could delay the nuclear deal as Iran has insisted that U.S. sanctions placed on Raisi be removed before an agreement is reached.
Oil prices are also drawing support from forecasts for limited U.S. output growth.
“We expect strong demand and supplies to be tight,” Phillips Futures analyst Avtar Sandu told Reuters, saying investors were looking to the next meeting of the Organization of the Petroleum Exporting Countries with its allies for supply outlook.
