On the rise with oil supply concerns – Cyprus Newspaper
Oil rose at the beginning of Asian transactions on Tuesday with concerns of supply.
Oil rose at the beginning of Asian transactions on Tuesday with concerns of supply.
Iran, the key to alleviating the sanctions on a large oil producer, the United States preparing to reject the proposal of a nuclear agreement and the influence of fires in Canada was effective in this rise.
Brent oil futures increased by 0.85 percent to 65.18 dollars per barrel and US crude oil increased by 0.94 percent to 63.11 dollars.
This increase came with the decision of the OPEC+ group to continue to increase the production of 411 thousand barrels per day in July. This amount was lower than expected in the market and remained at the same level as the previous two months.
Geopolitical tensions supported prices on Tuesday. An Iranian diplomat said on Monday that Iran has been preparing to reject the US proposal aimed at terminating decimal nuclear disputes. Diplomat said the proposal did not meet Tehran’s interests and did not soften Washington’s attitude towards uranium enrichment.
The failure of nuclear negotiations between the US-Iran means that sanctions on Iran will continue. This may be a supportive factor in terms of prices, as Iran will limit oil supply. The Russian-Ukrainian war continues to increase the supply concerns and geopolitical risk premiums.
Forest fires in Alberta, Canada caused some oil and gas production facilities to be temporarily closed. This led to the possibility of a decrease in global supply.
