By Top1 Markets
05/25/2021 International oil prices rose by quite 3% on Monday, as market concerns about Iranian petroleum returning to the market eased. London Brent petroleum futures closed at US$68.46 per barrel, a rise of three , and July US petroleum futures closed at US$66.05 per barrel, a rise of three .9%.
Oil prices rose by quite 3% overnight, and Iranian nuclear negotiations are still continuing. The market is extremely optimistic about the demand side and believes that Iranian petroleum flowing into the market won't cause oversupply. Goldman Sachs predicts that albeit Iranian petroleum enters the market, Brent petroleum will rise to $80 within the fourth quarter.
Tyler Richey, co-editor of Sevens Report Research, acknowledged that thanks to Iran’s non-cooperation and U.S. Secretary of State Antony Blinken also questioned Iran’s ability to suits its promises, “it reduces the likelihood of reaching a replacement agreement, so it's unlikely that sanctions are going to be lifted within the almost midterm.”
Blinken stated within the media that the US has not yet seen "Iran is prepared and willing to implement what it should do to lift its sanctions.”
Negotiations between Iran and world powers are still ongoing, and occasional reports of progress are reported. Richey acknowledged that last week the worth of petroleum fell due to the expected increase within the new nuclear agreement.
According to media reports, the International nuclear energy Agency (IAEA) said on Monday that Iran notified the UN nuclear watchdog agency that it might extend a monitoring agreement for one month. The Speaker of the Iranian National Assembly announced on Sunday that the monitoring agreement had expired, causing the general public to question Iran’s efforts to revive the nuclear agreement.
The U.S. and Iran are negotiating the return of the U.S. to the JCPOA agreement and Iran’s renewed compliance with the nuclear agreement through indirect negotiations centered on Europe. Warren Patterson, director of commodity strategy at ING, said, “Once the us returns to the JCPOA agreement, it's going to dampen oil market sentiment, but we still believe that the market has the power to soak up Iran’s increased supply, so price weakness should be a short-lived phenomenon.”
At an equivalent time, U.S. stocks rose on Monday. Sevens Report Research co-editor Tyler Richey acknowledged , “The market is usually optimistic about the progress of the economic restart, especially within the us . This sentiment boosted all risk assets on Monday, especially oil and refined oil. Because traders are looking forward to the weekend holiday (Memorial Day) to unofficially predict the approach of the summer driving season."
Other energy price:
June gasoline futures prices rose 2.4%, closing at nearly $2.12 per gallon.
June thermal oil futures prices rose 2.7% to shut at US$2.04 per gallon.
June gas futures prices fell by nearly 0.7%, closing at nearly $2.89 per million Btu.
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