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Oil Mixed, but Reverses Losses as U.S. and Iran Close to Renewing Nuclear Deal

Published 05/20/2021, 11:29 PM
Updated 05/20/2021, 11:35 PM
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By Gina Lee

Investing.com – Oil was mixed Friday morning in Asia, following three days of losses, as the U.S.continues talks with Iran to revive the nuclear deal and lift sanctions.

Brent oil futures inched down 0.02% to $65.10 by 11:27 PM ET (3:27 AM GMT) and WTI futures was up 0.23% to $62.09.

Oil prices are on track to record their biggest weekly loss since March as the U.S. and Iran inch closer to reviving a 2015 nuclear deal that could lift sanctions on Iran’s oil, banking and shipping sectors, and thus boost Iranian crude supply.

Enrique Mora, the European Union official in charge of coordinating diplomacy in Vienna for the nuclear talks, said he was confident a deal, in the works since April 2020, could be reached.

"While the ink is not yet dry and outstanding issues remain to be resolved, significant progress appears to have been made in the ongoing nuclear negotiations in Vienna and around 1 million barrels per day of additional Iranian barrels looks set to potentially hit the market in the back half of this year," RBC Capital Markets' Helima Croft said in a note.

On the demand side, investors remain optimistic about fuel demand outlook heading into the peak summer travel season due to accelerating COVID-19 vaccination rates in Europe and the U.S. However, the COVID-19 outbreaks in parts of Asia continue to cast a shadow on fuel demand.

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