Oil prices closed on Tuesday, at their highest levels in more than two years, after the head of US diplomacy said that “even if the United States reaches a nuclear deal with Iran, hundreds” of US sanctions on Tehran will remain.
This may mean a delay in the return of additional Iranian supplies of crude to the market.US Secretary of State Anthony Blinken said: “I expect that even when you return to compliance with the JCPOA, the nuclear deal, hundreds of sanctions will remain in place, including those imposed by the Trump administration. They will remain in place even if they are not consistent with the JCPOA, until for Iran to change its behaviour.
The international benchmark Brent crude contracts rose 73 cents, or 1%, to settle at $72.22 a barrel, the highest price since May 2019.
US West Texas Intermediate crude contracts rose 82 cents, or 1.2%, to settle at $70.05 a barrel, the highest price since October 2018.
Also helping to limit market gains, data showed that China’s crude oil imports fell 14.6% year-on-year in May.
Crude prices rose in the past few weeks, Brent jumped about 40%, and US crude recorded greater gains, in light of expectations that demand will return, thanks to the success of some countries in vaccinating their citizens against Corona.
The market is awaiting the latest weekly data on oil and fuel stocks in the United States, which will be issued by the American Petroleum Institute and the US government tomorrow, Wednesday.