Oil prices are now trading near their highest level since 2018.
Futures in New York were trading above $69 U.S. a barrel on Friday (June 4). A significant draw in American crude stockpiles added positive signs to the oil market that’s been buoyed by ongoing talks with Iran on a potential nuclear deal.
A U.S. State Department spokesman said that there should be a sixth round of negotiations to revive the Iran nuclear deal and “there’s just about every expectation there will be subsequent rounds beyond that.”
The Iranian talks are occurring in an oil market where demand is recovering sharply in the west but remains patchy in parts of Asia. The Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, which has agreed to hike its output in July, may need to keep adding oil barrels to the market in August and September to meet ongoing recovery demand.
West Texas Intermediate crude oil for July delivery rose 0.5% to $69.12 U.S. a barrel, while Brent crude oil for August settlement gained 0.5% on Friday to $71.63 U.S. a barrel.