Oil edges up as rising demand faces Iran supply worries | Reuters

Oil edges up as rising demand faces Iran supply worries | Reuters

Oil prices edged a shade higher on Tuesday as rising demand from the approach of the Northern Hemisphere’s summer driving season and lifting of coronavirus restrictions faced worries that Iran’s possible return to the market will cause a supply glut.

After gaining over 5% in the prior two sessions, Brent futures rose 19 cents, or 0.3%, to settle at $68.65 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 2 cents to settle at $66.07.

That was the highest closes for both benchmarks in a week.

Another factor supporting crude prices was the decline in the U.S. dollar to a 19-week low versus a basket of currencies as inflation worries recede. A weaker dollar makes it less expensive for holders of other currencies to buy commodities priced in dollars, like oil.