Brent oil prices rose for a fourth straight session on June 15 as the prospect of fuel supplies from Iran remained uncertain.
Specifically, the price of Brent oil rose 38 US cents, or 0.5%, to 73.24 USD/barrel after climbing 0.2% in the session on June 14. Meanwhile, the price of US WTI light sweet oil traded at $71.21 per barrel, plus 33 US cents, or 0.5%.
Brent oil price increased for 4 consecutive sessions on June 15. Photo: Reuters Ending the session on June 14, Brent oil price advanced 17 US cents to 72.86 USD/barrel. The price of this oil commodity at the beginning of the session jumped to $73.64 per barrel – the highest level since April 2019. The price of WTI oil fell 3 US cents to 70.88 USD/barrel, after touching $71.78/barrel at one point, the highest level since October 2018. The price of “black gold” has increased sharply in recent weeks thanks to a gradual recovery in demand for fuel in the context of many countries easing restrictions to prevent the Covid-19 epidemic. The International Energy Agency (IEA) on June 11 forecast that global demand will return to pre-pandemic levels by the end of 2022, faster than previously predicted. The IEA called on the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as the OPEC+ group, to increase supply to meet demand. The OPEC+ group has limited output to support oil prices after the Covid-19 pandemic caused demand to drop to a record in 2020. Indirect discussions between the US and Iran, and the remaining powers in the 2015 Iran nuclear deal, resumed on June 12 in Vienna (Austria). However, the European Union (EU) described this round of negotiations on the multilateral nuclear deal as “tense”. The US return to the Iran Nuclear Agreement, also known as the Joint Comprehensive Plan of Action (JCPOA), would pave the way for the lifting of economic sanctions on Tehran, thereby allowing the OPEC member This continues to export crude oil. However, financial consulting firm ING Economics said that the possibility of the US rejoining the JCPOA before the Iranian presidential election this weekend is very unlikely. Regarding supply, the OPEC + group recently decided to maintain the production agreement to support oil prices in the middle of the epidemic season. According to ING, additional supply from the OPEC+ group will be needed in the second half of the year, as demand is expected to continue to recover. However, the rally of oil prices in the session was also limited as investors cautiously waited for the outcome of the policy meeting of the US Federal Reserve (FED) from 15-16/// 6 to look for signals on when the central bank will begin to scale back its monetary stimulus measures.
You must log in to post a comment.