Oil prices fell for a second straight session on Friday as the U.S. dollar soared on the prospect of interest rate hikes in the United States, but they were on track to finish the week little changed and only slightly off multi-year highs.
Oil prices rose on Monday, hitting their highest levels in more than two years supported by economic recovery and the prospect of fuel demand growth as vaccination campaigns in developed countries accelerate.
Oil prices rose on Friday to fresh multi-year highs and were set for their third weekly jump on expectations of a recovery in fuel demand in the United States, Europe and China as rising vaccination rates lead to an easing of pandemic curbs.
Iran is planning a speedy increase in its oil output, a senior Oil Ministry official said on Wednesday, as talks continue between Tehran and P4+1 – the remaining signatories to the Iran nuclear deal – to lift US sanctions that have seen it pumping far below capacity since 2018.
Iran’s permanent representative to the Vienna-based international organizations Kazem Gharibabadi held talks with Secretary-General of OPEC Mohammed Barkindo on Monday evening and discussed oil market and bilateral ties.
Iran’s oil minister said the country has the capacity to increase its crude production rapidly, as world powers enter the final stages of negotiations to revive a 2015 nuclear accord with the Islamic Republic.
Japanese refiners could resume oil imports from Iran as early as three months after confirming Iranian sanctions are being lifted, Petroleum Association of Japan President Tsutomu Sugimori said on Thursday.
Oil prices inched higher on Friday, with Brent holding near $70 a barrel as US economic data and expectations of a rebound in global demand outweighed concerns about more supply from Iran once sanctions are lifted.
A potential return of Iranian crude supplies into the global markets won’t stop a surge in oil prices being fueled by a recovery in demand after an easing of coronavirus restrictions around the world, said the Goldman Sachs bank.