Oil Prices Post 25% Quarterly Gain
Published By : 30 Jun 2015 | Published By : QYRESEARCH
U.S. prices of oil on Tuesday rose after Iran and six other world powers stretched the nuclear talks deadline until July 7. The prices posted a quarterly gain of 25 per cent.
U.S. oil prices posted their highest percentage gain for a single quarter since 2009 on the cues of a decline in production in the United States and a rising demand after dropping to a nearly six year low in the earlier quarter. However, the output of US oil has not slowed so far. US oil prices have also stabilized to around US$ 60 per barrel as traders seek guidance. The US benchmark dropped 1.4 per cent this month.
The Iran nuclear talks could eventually allow the country to hike its oil exports. The talks are aimed at obstructing the nation’s path to a nuclear power in return for easing international sanctions. If the deal is not agreed upon, it could support oil prices since it would avoid the addition of hundreds and thousands of barrels of Iranian oil to an already oversupplied global market.
Market observers predict that there is still a possibility of a final deal, with ClearView Energy Partners LLC stating that there is an 80 percent chance that the deal will be finalized by July 10.
The sanctions slash crude oil in Iran and condensate exports from 2.6 million barrels per day in 2011 to 1.4 million barrels per day, states the US Energy Information Administration. Iranian oil minister Bijan Namdar Zangeneh has stated that if the sanctions are lifted, the nation would be able to rapidly increase production. However, some market analysts are skeptical about that.
Sweet, light crude meant for delivery in August stabilized at US$ 1.14 or 2 per cent to reach US$ 59.47 per barrel on the New York Mercantile Exchange.