Carl Icahn owns approximately $ 400 million stake in Allstate

Bloomberg

Oil has changed little as investors weigh on Iran and demand increases

(Bloomberg) – Oil edged up with the prospect of a continued recovery in demand offsetting some concerns about rising supplies to Iran if sanctions on the country’s exports are relaxed. West Texas Intermediate closed higher after tilting between gains and losses in about $ 1 a -barrel trading range on Tuesday. Expectations of a pick-up in demand as the summer driving season in the US begins this month along with signs of improving mobility in Europe are keeping prices strong. Meanwhile, talks between Iran and other nations continued in Vienna to resolve outstanding issues over a nuclear deal, which could pave the way for the removal of sanctions on crude flows from China. the nation of the Persian Gulf. The increased supply is weighed against expected demand this summer, said Tom Finlon of Brownsville GTR LLC, a Houston-based trading and logistics company. “Diplomats must speak in optimistic terms, but there are still significant hurdles to overcome.” Futures contracts in New York returned to their settlement price after falling lower in the late afternoon. The American Petroleum Institute reportedly reported a 439,000 barrel drop in U.S. crude inventories, as well as lower gasoline and distillate inventories last week. York. But the prospect of a new surge in Iranian production limited the gatherings. A reserve of tens of millions of barrels of oil floating on tankers is at stake if a deal is struck. Iran could hold up to 69 million barrels at sea, according to estimates by EA Gibson Shipbrokers Ltd., although it is unclear exactly what the true size of the floating stock is. The Memorial Day break, a three-day weekend for many, marks the unofficial start of the country’s summer driving season. Meanwhile, a sample of 15 European cities was the most crowded since March 2020 last week, according to data from TomTom Plc. “We’re going to need some sort of bullish inventory report or further validation of Europe’s recovery to really move on to the next.” Said Jay Hatfield, CEO of Infrastructure Capital Management. Meanwhile, the market “is in a phase of consolidation, waiting for demand to unfold”, while the prospect of more Iranian barrels adds to the pressure on prices. The discount against the global benchmark Brent has declined sharply. WTI’s rebate to Brent fell this week to the closest to the two ratings since November, before slowing slightly on Tuesday. At the same time, the demotion of WTI – when short-term contracts are more expensive than more distant ones – has firmed in recent days, indicating tight supplies at a time when demand for fuel in the United States is expected to increase. . at less than $ 3 a barrel, that starts to affect US export capacity, ”said Bob Yawger, head of the futures division at Mizuho Securities. , reflecting that stocks are tight as oil refiners ramp up production. The spread, which allows market participants to roll long positions into the next month, trades within three days of the expiration of the first month’s futures contract. most trusted source of business information. © 2021 Bloomberg LP


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