Oil Prices declined on Tuesday, with U.S. prices down from their highest finish in more than two years. The global benchmark prices only topped $70 a barrel for the first time since mid-March.
Phil Flynn, senior market analyst at The Price Futures Group said that the U.S. Oil Prices had finished Monday at their highest in over two years, but the move has now been slowed in part by the Iranian talk breakthrough rumours. Talks between Iran and world powers are aimed at a return to the 2015 Iran nuclear deal to limit Tehran’s nuclear activities. A deal would lead the U.S. to lift sanctions on Iran, allowing the country to increase oil exports.
West Texas Intermediate crude for June delivery CL00 CLM21 fell 78 cents, or 1.2%, to finalize at $65.49 a barrel on the New York Mercantile Exchange after touching a fresh intraday low at $64.11. Prices came to terms on Monday at $66.27, the highest front-month finish since April 23, 2019.July Brent crude BRN00 BRNN21 fell by 75 cents, or 1.1%, at $68.71 a barrel on ICE Futures Europe, after tapping a low at $67.28. In early Tuesday trading, prices had reached a high of $70.24. Front-month Brent contracts last traded above $70 on March 15.
Marshall Steeves, energy markets analyst at IHS Markit said that the oil found support Monday from a renewed focus on intentions for accelerating U.S. demand as many states reopen this week, supporting demand for refined products. The demand growth remains under pressure in much of the world where the pandemic persists, and economies remain in various stages of lockdown. The U.S. saw a pandemic-era record for the number of air travelers, with more than 1.85 million people screened at its airports on Sunday.