Oil dips on expectations that Iranian oil could cool global supply crisis

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Oil dips on expectations that Iranian oil could cool global supply crisis

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 Oil dips on expectations that Iranian oil could cool global supply crisis
Image source: Copyright © 2022 Kalkine Media®

Highlights

  • Crude oil prices settled lower Monday.
  • In the last week, the prices of crude oil rallied for the seventh consecutive week.
  • Oil has already gained 20% in 2022.

Crude oil prices settled lower on Monday on an indication that nuclear talks between the US and Iran could lead to the removal of US sanctions on Iranian oil.

In the last week, the prices of crude oil rallied for the seventh consecutive week amid ongoing supply disruptions fuelled by icy weather conditions in the US and ongoing political unrest in major oil-producing nations.

April delivery Brent Crude oil futures last traded at US$92.31 per barrel down 0.69%, whereas March delivery WTI crude oil futures traded 0.26% down at US$91.08 per barrel as of 8 February 2022 at 12:56 PM AEDT.

Iran could cool boiling oil prices

If US sanctions are lifted, Iran will be able to export millions of barrels of crude oil to cool down the boiling prices of oil.

The US President’s administration restored sanctions waivers to Iran on Friday.

Iran has so far refused to sit down with U.S. diplomats but the officials from both nations are expected to meet on Tuesday in the Austrian capital.

The price of crude oil is expected to surpass the mark of US$100 per barrel amid robust demand and tight supplies. Oil has already gained 20% in 2022.

Rising oil prices

Source: Copyright © 2022 Kalkine Media®

The oil market has also got support from ongoing geopolitical unrest between Russia and Ukraine.

Bottom Line

Crude oil prices settled lower on Monday on signals that the US could lift sanctions from Iran which can cool down the ongoing supply crisis and oil prices.

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