Daily Times

Oil prices gained on Monday, beginning the week on a positive note as continued bounce back in major economies and improved prospects of cross-border travel in Europe outweighed headwinds from a potential revival of the Iran nuclear deal.

At 1310 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, was trading at $67.57 a barrel after gaining 1.70 percent. Likewise, the US West Texas Intermediate (WTI) crude futures gained 1.71 percent to reach $64.67 a barrel. The price for Opec Basket was recorded at $65.29 a barrel with 1.00 percent decrease, Arab Light was available at $66.65 a barrel with 2.98 percent increase while price of Russian Sokol increased 3.66 percent to reach $67.68 a barrel.

According to experts, Brent crude is now near the middle of a wider $64.60 to $70 barrel range after last week’s price actions and Brent could gradually edge higher this week. They said that prices are supported by improving prospects of cross-border travel in European countries.

A robust vaccination drive has brought infection rates under control and allowed for the reopening of public venues at some European destinations. The rise in travel and tourism demand in Europe is in stark contrast to the plight of developing economies such as India, where cases have topped 26 million amid a devastating second wave of Covid-19.

On the supply side, a possible return of Iranian barrels to the market could upset the dynamics of Opec+, the supergroup of oil producers led by Saudi Arabia and Russia, which also includes Tehran. Opec+ plans to incrementally add 2 million barrels per day by July despite a surge in Covid-19 infections in several markets, particularly India, which is the third largest oil consumer globally. The next meeting to discuss the current supply dynamic is scheduled for the end of this month.