Progress in US and Iranian nuclear talks could take steam out of oil rally
Headway on reviving a deal restricting the Opec country's weapons development would boost crude supply
07 February 2022 - 07:36
byLaura Sanicola
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New signals that talks between US and Iranian officials may be nearing a conclusion could take steam out of the oil rally, traders said, after US and Brent crude reach multiyear highs on Friday.
Anticipation that Washington and Tehran have made progress on reviving a deal restricting the Opec country's nuclear weapons development would boost crude supply.
If the US lifts sanctions on Iran, it could boost oil shipments, adding to global supply.
Brent crude fell 5c, or 0.1%, to $93.22 a barrel at 5.12am on Monday. The benchmark settled at $93.27 a barrel on Friday having earlier touched its highest since October 2014 at $93.70.
US West Texas Intermediate crude fell 63c to $91.68.
“There has been speculation that this rally was going to encourage some sanctions relief and get more Iranian oil on the market,” said John Kilduff, partner at Again Capital in New York.
On Friday, the US restored sanctions waivers allowing international nuclear co-operation with Iran on projects designed to make it harder for Iran's nuclear sites to be used to develop weapons.
Another senior state department official on Friday said the waiver is needed to permit technical discussions about reviving the deal but is not a signal that the US is on the verge of reaching an agreement on its restoration.
Speaking on condition of anonymity, a European official said top envoys to the Vienna talks — which are indirect because Iran has so far refused to sit down with US diplomats — are likely to meet on Tuesday in the Austrian capital.
“President [Joe] Biden still wants us to negotiate in Vienna.… That's a symbol or a sign of our continued belief that it is not a dead corpse, that we need to revive it because it is in our interest,” Rob Malley, US envoy for Iran, told MSNBC on Sunday night.
Iran’s foreign minister said on Saturday that a US move to restore sanctions waivers to Tehran is not enough and Washington should provide guarantees for the revival of the 2015 nuclear deal with major powers.
Israeli Prime Minister Naftali Bennett said on Sunday he spoke to Biden and discussed ways to halt Iran's nuclear programme.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Progress in US and Iranian nuclear talks could take steam out of oil rally
Headway on reviving a deal restricting the Opec country's weapons development would boost crude supply
New signals that talks between US and Iranian officials may be nearing a conclusion could take steam out of the oil rally, traders said, after US and Brent crude reach multiyear highs on Friday.
Anticipation that Washington and Tehran have made progress on reviving a deal restricting the Opec country's nuclear weapons development would boost crude supply.
If the US lifts sanctions on Iran, it could boost oil shipments, adding to global supply.
Brent crude fell 5c, or 0.1%, to $93.22 a barrel at 5.12am on Monday. The benchmark settled at $93.27 a barrel on Friday having earlier touched its highest since October 2014 at $93.70.
US West Texas Intermediate crude fell 63c to $91.68.
“There has been speculation that this rally was going to encourage some sanctions relief and get more Iranian oil on the market,” said John Kilduff, partner at Again Capital in New York.
On Friday, the US restored sanctions waivers allowing international nuclear co-operation with Iran on projects designed to make it harder for Iran's nuclear sites to be used to develop weapons.
Another senior state department official on Friday said the waiver is needed to permit technical discussions about reviving the deal but is not a signal that the US is on the verge of reaching an agreement on its restoration.
Speaking on condition of anonymity, a European official said top envoys to the Vienna talks — which are indirect because Iran has so far refused to sit down with US diplomats — are likely to meet on Tuesday in the Austrian capital.
“President [Joe] Biden still wants us to negotiate in Vienna.… That's a symbol or a sign of our continued belief that it is not a dead corpse, that we need to revive it because it is in our interest,” Rob Malley, US envoy for Iran, told MSNBC on Sunday night.
Iran’s foreign minister said on Saturday that a US move to restore sanctions waivers to Tehran is not enough and Washington should provide guarantees for the revival of the 2015 nuclear deal with major powers.
Israeli Prime Minister Naftali Bennett said on Sunday he spoke to Biden and discussed ways to halt Iran's nuclear programme.
Reuters
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