Oil is set for weekly losses in Iran nuclear talks

Oil prices rose on Friday after three days of losses as investors dared to withdraw Iranian crude supplies after officials said Iran and world powers had made progress on the nuclear deal.

By 1017 GMT, Brent crude was up 80 cents, or 1.2%, to $ 65.91. The West Texas Intermediate was $ 62.82 a barrel, 88 cents or 1.4%.

Both agreements are on the verge of falling about 4% a week – the biggest loss to them since March – following the Iranian president’s statement that the United States is ready to lift sanctions on its oil, banking, and shipping sectors.

Iran and the world powers have been in talks since April to renew the 2015 agreement, and an EU official who led the discussions said he hoped an agreement would be reached on Wednesday.

However, investors are excited about the recovery in fuel demand this summer as vaccination programs in Europe and the United States will allow more people to travel, although rising cases in some parts of Asia are raising concerns.

Options on oil prices for December 2021 have risen above $ 100, with a surprisingly strong U.S. last week. The Brent contract rose after inflation data, with nearly three times the open interest in calls in May, JPMorgan (NYSE: JPM) analysts said. The bank predicts that Brent will end at $ 74 in 2021.

To reach $ 100, demand should average above 102.6 million BPD in the third quarter and grow to 103.6 million BPD in the fourth quarter, in the absence of an additional OPEC + supply response, JPMorgan said.

Iranian crude and capacitor production is expected to rise to 3.2 million barrels a day in December, up from about 2.8 million ppm in the first quarter.

This year, Barclays (LON: BARC) expects Brent and WTI oil prices to be $ 66 a barrel and $ 62 a barrel, respectively.

This lowers demand estimates for emerging markets in Asia (formerly China) region and flags further negative risk if the recent epidemic continues.

“Extended movement controls in the region may somewhat reduce the need for recovery, but it is unlikely to stop it for a sustainable period that will give positive results to vaccination programs around the world,” it said.

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