(MENAFN- Trend News Agency)
Oil prices pulled back slightly on Tuesday on the latest
progress in last-ditch talks to revive the 2015 Iran nuclear
accord, which would clear the way to boost its crude exports in a
tight market, Trend reports with reference to Reuters .
Brent crude futures fell 14 cents, or 0.1%, to $96.51 a barrel
at 0404 GMT, paring a 1.8% gain from the previous session.
U.S. West Texas Intermediate (WTI) crude futures declined 16
cents, or 0.2%, to $90.60 a barrel, after climbing 2% in the
previous session.
'The spectre of a U.S.-Iran nuclear deal continues to hover over
the market,' ANZ Research analysts said in a note.
The European Union late on Monday put forward a 'final' text to
revive the 2015 Iran nuclear deal, awaiting approvals from
Washington and Tehran. A senior EU official said a final decision
on the proposal was expected within 'very, very few weeks'.
'While the details around the timing of the resumption of Iran's
oil exports remain uncertain even if the accord is revived, there
is certainly scope for Iran to increase oil exports relatively
quickly,' Commonwealth Bank analyst Vivek Dhar said in a note.
He said Iran could boost its oil exports by 1 million-1.5
million barrels per day, or up to 1.5% of global supply, in six
months.
'A revival of the 2015 nuclear accord will likely see oil prices
fall sharply given that markets probably don't believe a deal will
be reached,' Dhar said.
However, signs that demand may not be dented as much as feared
are keeping a floor under the market for now, following
stronger-than-expected trade data from China on the weekend and the
surprising acceleration in U.S. jobs growth in July.
The oil market has remained under pressure recently over global
recession fears, with Brent prices suffering their biggest weekly
drop last week.
China, the world's largest crude oil importer, brought in 8.79
million barrels per day of crude in July, 9.5% lower from a year
earlier but up from June's import volumes, according to China's
customs data.
Traders will also be watching out for weekly U.S. oil inventory
data, first from the American Petroleum Institute on Tuesday and
then the Energy Information Administration on Wednesday.
Five analysts polled by Reuters expect crude stockpiles fell by
around 400,000 barrels and gasoline stockpiles declined also by
about 400,000 barrels in the week to Aug. 5, while distillate
inventories, which include diesel and jet fuel, were unchanged.
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