Oil rallies in choppy trading amid Iran uncertainty, thin volume
BNN Bloomberg
Oil climbed the most in over a week during a volatile summer session as investors continue to weigh US-Iran nuclear deal talks and the potential hit to demand from an economic slowdown.
West Texas Intermediate futures topped US$90 a barrel on Monday amid a return of bullish sentiment after a recent oil rout. Uncertainty around Iranian supply aided crude’s drift higher in a market where shortages have been exacerbated by sanctions on Russian energy. A draft text to revive the 2015 nuclear deal has been tabled by the European Union, and the US and Iran have have a matter of weeks to now decide whether to accept it, European officials with knowledge of the negotiations said on Monday.
The talks around a possible return of Iranian supply continues to unnerve the market, said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management. At the same time, “trading volume remains pretty tepid and it does not take much to move the market at the moment,” she added.
