Oil Prices Jump More Than 3% as Fears of Resuming Iran’s Exports Subside

Oil prices jumped more than 3% on Monday, as ample demand fueled by vaccination campaigns with Covid-19 vaccines sparked optimism among dealers that the market could absorb any Iranian oil that would come to it if Western talks with Tehran lead to the lifting of sanctions.

A drop in deaths due to Covid-19 in India also boosted expectations that oil demand may rise in the coming weeks.

Brent crude futures, the world benchmark, ended the trading session up $2.02, or 3%, to settle at $68.46 a barrel.

US West Texas Intermediate crude futures rose $2.47, or 3.9%, to settle at $66.05 a barrel.

Goldman Sachs said that expectations of a further rise in oil prices remain the same even with a possible increase in Iranian exports.

He added in a note that even if Iranian exports resume in July, he estimates that Brent prices will reach $80 a barrel in Q4 of 2021.

S1: 64.35	R1: 67.10
S2: 62.60	R2: 68.10
S3: 61.65	R3: 69.70