Oil Surges With Iran Saying Differences Remain on Sanctions Deal - Bloomberg

Oil Surges With Iran Saying Differences Remain on Sanctions Deal - Bloomberg

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WTI for July delivery rose $2.47 to settle at $66.05 a barrel Brent for the same month gained $2.02 to $68.46 a barrel, to the highest since May 18 Oil climbed the most in a month after Iran said that gaps remain in negotiations aimed at reaching a deal to end U.S. sanctions on its crude. Futures rose 3.9% in New York on Monday with added support from a weaker dollar, which makes commodities priced in the currency more attractive, and a rally in U.S. equities. Iran said there are still differences around the timing of when countries will return to compliance with the original 2015 nuclear agreement, allaying some concern about a rapid ramp-up in the Persian Gulf nation’s output. While the market is anticipating the Islamic Republic’s supply will pick up again by late summer, the demand recovery will be strong enough to absorb it, Goldman Sachs Group Inc. said. The bank expects Brent futures to hit $80 a barrel in the next few months. “Seasonally we’re coming into a strong demand period, overwhelming concerns on supply,” said Peter McNally, global head for industrials, materials and energy at Third Bridge. With the U.S. continuing to reopen, air travel picking up and Europe lifting pandemic-driven lockdowns, “it’s more than likely those barrels can get absorbed.”