Oil prices rose more than 3% on Monday as a demand bump fueled by COVID-19 vaccination drives gave traders optimism that the market can absorb any Iranian oil that would come on the market if Western talks with Tehran lead to the lifting of sanctions.
A decline in deaths due to COVID-19 in India also bolstered expectations that oil demand could rise in coming weeks, as reported by Reuters.
Read alsoGOP senators introduce bill to reimpose waived Nord Stream 2 sanctions – mediaBrent crude oil futures settled up $2.02, or 3%, at $68.46 a barrel, while July U.S. West Texas Intermediate ended at $66.05 a barrel, up $2.47, or 3.9%.
Prices also got a boost on expectations that a new deal with Iran is less likely than it was last week, said Bob Yawger, director of Energy Futures at Mizuho in New York.
Iran and the U.N. nuclear watchdog are extending a recently expired monitoring agreement by a month, both sides said on Monday, avoiding a collapse that could have pitched wider talks on reviving the 2015 Iran nuclear deal into crisis.