TOKYO- Oil prices rose on Monday, reversing earlier losses, as investors kept bullish sentiment on expectations that global supply would remain tight as demand picks up and shrugged off signs of progress in the US-Iran nuclear talks.
“Investors scooped up short-term profits on the news suggesting progress in the US-Iran nuclear talks, but fresh buying kicked in again after the technical corrections as global supply is expected to stay tight,” said TatsufumiOkoshi, a senior economist at Nomura Securities.
US President Joe Biden’s administration on Friday restored sanctions waivers to Iran to allow international nuclear cooperation projects, as the talks on the 2015 international nuclear deal enter the final stretch.
If the United States lifts sanctions on Iran, the country could boost oil shipments, adding to global supply.
Brent crude was up 60 cents, or 0.6 percent, at $93.87 a barrel, after touching its highest since Oct. 3, 2014 of $94.00 earlier. It slid to as low as $92.47 in an early trade.
US West Texas Intermediate crude climbed 25 cents, or 0.3 percent, to $92.56 a barrel, near its 7-year high hit on Friday, having fallen to as low as $91.36 earlier in the session.
Both benchmarks rose more than $2 on Friday, extending their rally into a seventh week on ongoing worries about supply disruptions fuelled by political turmoil among major world producers.
“Investors expect more twists and turns in the US-Iranian talks and no agreement to be reached anytime soon,” said Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd.
