Oil prices extended gains on Friday on the back of stronger US economic data and a rise in optimism for a rebound in global demand. This overshadowed fear about more supply from Iran once sanctions are lifted from the US.
Currently, Brent Crude is performing around $69.7 per barrel up 0.4%, while US West Texas Intermediate traded a little over $67.2 per barrel up 0.6%.
Notably, both Brent and WTI are moving towards recording weekly gains of 4% and 5% respectively.
Investors are also waiting for the OPEC meeting on June 01 where the oil producers will discuss easing production curbs against the prospect of Iranian oil coming back to the market.
On Thursday, Brent Crude and the U.S. West Texas Intermediate (WTI) strengthened by 1% as investors hope for rapid economic recovery from the pandemic takes centre stage which is expected to bolster oil demand further.
It is expected that OPEC may confirm the May-July plan next week that will ease the oil production cuts by the planned 840,000 barrels per day (BPD) in July. However, broadly, no surprises are in the offing despite the track record of surprising both sell-side and buy-side of the markets this year.
Further, Investors keenly watch the Iranian nuclear talks with the Western. It is keenly watched whether the US will lift sanctions on Iranian oil fully or partially and also when. At present, the government of both US and Iran have entered into indirect talks for reviving the pact for Tehran to restraint its nuclear activities in return for elimination in sanctions.
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( With inputs from indiainfoline)