Crude oil prices fell and Iran’s negotiations were expected

On Monday, during electronic trading in Asia, international crude oil futures fell, falling from their highs in several years, as investors waited for the outcome of negotiations on Iran’s nuclear agreement, which would increase crude oil supply.
   as of 23.18 CET, the global benchmark Brent crude oil for August fell by US $0.41 to US $71.48/barrel. It hit $72.27 in early trading, the highest since May 2019.
   July WTI crude oil futures on the New York Mercantile Exchange (NYMEX) fell $0.28 to $69.34 a barrel. It hit $70 in early trading, the first time since October 2018.
With WTI crude hitting the $70 mark, investors may choose to settle for safety, analysts said. At present, the focus of the market is the outcome of the Iranian negotiations. But it seems unlikely that an agreement will be reached before Iran’s presidential election.
Over the past two weeks, crude oil futures have been rising continuously, as the United States and Europe relaxed the COVID-19 restrictions, coupled with the arrival of the summer driving season to boost fuel demand.
   the OPEC alliance predicts that the strong growth of global crude oil demand in the second half of this year will exceed the growth of supply. Even if the OPEC alliance gradually relaxes production restrictions, global crude oil inventories will decline from September to December.
Iran and world powers will hold the fifth round of talks in Vienna on Thursday (June 10). If an agreement is reached, the talks may lead to the lifting of US sanctions on Iran’s oil exports. Iran will hold a presidential election on June 18, and analysts say that once the sanctions are lifted, Iran’s crude oil production may increase by 500000 to 1 million barrels per day.

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