Petroleum prices rose on Wednesday, supported by a decision by the Organization of the Petroleum Exporting Countries and their allies to stick to its plan to restore supply to the market gradually and by the slow pace of nuclear talks between Iran and the United States.
Brent crude futures rose 69 cents, or 1%, to $70.94 U.S. per barrel. U.S. West Texas Intermediate (WTI) crude futures rose 60 cents, or 0.9%, to $68.32 per barrel.
Expecting a recovery in demand, OPEC and its allies, together known as OPEC+, agreed on Tuesday to keep to their plan for a gradual easing of supply curbs through July.
Saudi Energy Minister Prince Abdulaziz bin Salman said there has been solid demand recovery in the United States and China and he believes that the pace of COVID-19 vaccine rollouts can only lead to further rebalancing of the global oil market.
Analysts also harbour the opinion that the slow progress of Iran nuclear talks provides breathing room for demand to catch up before Iranian oil returns to the market.
Two Western diplomats and an Iranian official said the talks are likely to pause on Thursday, but it was unclear if they would resume before Iran’s June 18 presidential election.
OPEC Secretary General Mohammad Barkindo also played down any potential disruption to the market, saying the group expected any return of Iranian exports to "occur in an orderly and transparent fashion" if and when a nuclear deal is reached.
Investors will also be on the lookout for weekly inventory data from the American Petroleum Institute, due later on Wednesday, and from the U.S. Energy Information Administration on Thursday.
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