Mexico City / 06.21.2021 07:38:19
The Oil prices rose on the back of strong demand during the summer driving season in the Northern Hemisphere and a pause in talks to reactivate the nuclear deal with Iran, which could lead to a resumption of crude supplies in that country.
The Brent for August delivery it was up 14 cents, or 0.2 percent, at $ 73.65 a barrel. The West Texas Intermediate (WTI) for July was up 21 cents, or 0.3 percent, at $ 71.85 a barrel.
Both of them benchmarks have risen in the last four weeks due to optimism about the rate of vaccinations and the expected recovery in summer trips.
“The panorama of the underlying physical demand for oil remains positive“said OANDA analyst Jeffrey Halley.” Despite the noise in the financial markets, the real world is on the right track and will require greater amounts of power as it reopens. “
Bank of America said that Brent is likely to average $ 68 this yearBut it could hit $ 100 in 2022 due to unleashed pent-up demand and increased use of private cars.
The Negotiations to reactivate the nuclear deal with Iran stopped on Sunday after hardliner Ebrahim Raisi won the country’s presidential election. Two diplomats said they expected a hiatus of about 10 days.
Iranian and Western officials believe it is Raisi’s rise unlikely to alter Iran’s negotiating position. A deal could lead to Iran exporting an additional 1 million barrels a day, or 1 percent of global supply.
The Prices are also supporting forecasts for limited growth in US oil production, giving OPEC more power to handle the market in the short term ahead of a potentially strong surge in shale oil production in 2022.
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