Oil rises as threat recedes of Iran supply resuming soon
By Administrator_ India
Oil prices rose on Tuesday, with Brent gaining for a fourth consecutive session, as the prospect of extra supply coming to the market soon from Iran faded with talks dragging on over the United States rejoining a nuclear agreement with Tehran.
Brent crude was up by 17 cents, or 0.2%, at $73.03 a barrel by 0347 GMT, having risen 0.2% on Monday. U.S. oil gained 15 cents, or 0.2%, to $71.03 a barrel, having slipped 3 cents in the previous session.
A U.S. return to the deal would pave the way for the lifting of sanctions on Iran that would allow the OPEC member to resume exports of crude.
Other members of the OPEC along with major producers including Russia – a group known as OPEC+ – have been withholding output to support prices amid the pandemic.
Still, prices were off their highs earlier in the day with U.S. crude briefly tripping into negative territory.
Investors and traders are also watching the outcome of the U.S. Federal Reserve meeting that starts later on Tuesday for signals on when it will scale back monetary stimulus, he said.
The Fed is getting ready to start debating how and when to start tapering a massive asset-purchase program that helped support the U.S. economy during the pandemic.