Baku. 24 June. REPORT.AZ/ Oil bulls have, in a relative sense, rather enjoyed the last two months or so, but Iran faces its own deadline on June 30 to ramp up crude exports adding yet more "downward pressure" to markets as we go into July.
"It's a crunch period for oil markets", Report informs Ole Hansen, Saxo Bank's Head of Commodity Strategy says.
"Weakness in the dollar and the Greek situation too is lifting the market but this is going to cap the upside", he states.
Hansen also points to a surplus of oil in the European market with a number of cargoes floating around unable to find a home as well as the possibility that Libyan oil might also muscle its way into the market.
Additionally, while the rig count may have dropped by four last week, the two largest US shale oil producing plays — Bakken and Permian — both added a rig each to their production roster indicating that a WTI figure of around $60/barrel is above breakeven. "It's worth keeping an eye on especially with the Iran situation developing and also with refinery demand in the US slowing", says O.Hansen.