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Oil hits two-year high as doubts gather over Iran s market return

Oil hits two-year high as doubts gather over Iran s market return | Business and Economy News

Oil prices kept climbing on Wednesday on signs of strong fuel demand in some economies, while the possibility of Iranian oil returning to global markets was cast in doubt after the United States secretary of state said sanctions against Tehran were not likely to be lifted. Global benchmark Brent crude futures were up 44 cents, or 0.6 percent, at $72.66 a barrel at 13:38 GMT, having earlier hit  $72.83, the highest since May 2019. United States benchmark West Texas Intermediate (WTI) crude futures were 30 cents higher, or 0.4 percent, at $70.35 a barrel. Earlier, they touched $70.62, the highest since October 2018. “The supercharged multi-year oil prices are a reflection of the improved oil demand sentiment, and along with it, the expectation that crude and products inventories will significantly be reduced in the second half of 2021 as a post-pandemic new normal of oil consumption sets in,” Rystad Energy’s Oil Markets Analyst Louise Dickson said in a Wednesday note.

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