Oil Retreats From Two-Year Peak Above $72 on Iran Supply Worries

Oil fell on Monday, after hitting a two-year peak above $72, on pressure from a possible increase in Iran’s exports, but the recovery in demand and supply restrictions from OPEC + provided some support.

Demand increases in the United States and Europe with the easing of restrictions related to COVID-19, and India is easing its isolation measures in another step that may boost fuel consumption.

OPEC and its allies adhered to agreed production limits until July.

Brent crude fell 62 cents, or 0.9%, to $71.27 after the opening of European markets, after hitting $72.27 earlier, its highest level since May 2019.

US West Texas Intermediate crude touched $70 for the first time since October 2018 but reversed the trend to trade down 66 cents, or 0.8%, to $69.07.

Crude has risen over the past two weeks, and Brent has increased 37% since the beginning of the year thanks to supply restrictions imposed by OPEC and its allies, and demand partially recovering from the collapse caused by the pandemic.

Iran and world powers start a fifth round of talks on June 10 in Vienna that could include the United States lifting economic sanctions on Iranian oil exports.