Oil on rise after previous decline

Global oil prices rose on May 21 morning after falling more than 6 percent for three trading days, Report informs referring to Bloomberg.

As of 8:50 a.m. (GMT+4), the price of July futures for North Sea Brent oil blend grew by 0.26 percent to $65.28. July futures on WTI oil rose in price by 0.47 percent, to $62.23 per barrel.

Oil prices are rising after sliding more than 6 percent over the past three sessions. Iran’s President Hassan Rouhani said world powers have accepted that major sanctions on his country will be lifted, though details and finer points still need to be ironed out. The potential for additional Iranian oil exports is being reflected in Brent’s prompt timespread, which is nearing a bearish contango structure in an indication market tightness is easing.

“I suspect prices are likely to remain under pressure until there is some clarity around US sanctions relief on Iran oil,” said Daniel Hynes, senior commodities strategist at Australia and New Zealand Banking Group.

Oil is still up more than 25 percent this year as a robust recovery from the pandemic in the US, China and parts of Europe boost optimism in the outlook for fuel demand, even as the virus makes a comeback in Asia.

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