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Oil costs regain some losses amid potential Iran hitch; GS bullish By Reuters

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© Reuters. FILE PHOTO: A closed petrol pump is seen in Chuquiaguillo, on the outskirts of La Paz, Bolivia, November 17, 2019. REUTERS/David Mercado

By Jessica Jaganathan

SINGAPORE (Reuters) -Oil costs rose on Monday as a possible snag emerged in reviving the 2015 Iran nuclear deal that would add extra oil provide, whereas Goldman Sachs (NYSE:) stated the case for increased costs stays intact even with elevated Iran exports.

futures for July rose 72 cents, or 1.1%, to $67.16 a barrel by 0651 GMT, whereas U.S. West Texas Intermediate for July was at $64.25 a barrel, up 67 cents, or 1.1%.

Oil costs fell virtually 3% final week after Iran’s president, Hassan Rouhani, stated america was able to elevate sanctions on his nation’s oil, banking and transport sectors.

“Iran’s oil manufacturing has been rising in current months, seemingly in anticipation of a lifting of the sanctions,” ANZ analysts stated in a observe on Monday.

Nevertheless, the speaker of Iran’s parliament stated on Sunday a three-month monitoring deal between Tehran and the U.N. nuclear watchdog had expired and that its entry to pictures from inside some Iranian nuclear websites would stop.

European diplomats stated final week that failure to agree an extension of the monitoring deal would plunge wider, oblique talks between Washington and Tehran on reviving the 2015 Iran nuclear deal into disaster. These talks are as a result of resume in Vienna this week.

Former President Donald Trump withdrew america from the deal in 2018 and re-imposed sanctions.

Even with a possible restart of Iran exports, the case for increased oil costs stays intact as a result of a vaccine-driven improve in international demand, Goldman Sachs analysts stated.

“Even aggressively assuming a restart in July, we estimate that Brent costs would nonetheless attain $80 per barrel in fourth quarter, 2021, with our new base case for an October restart nonetheless supporting our $80 per barrel forecast for this summer season,” the financial institution stated in a observe.

In the meantime, the Nationwide Hurricane Heart stated on its web site late on Sunday that it’s issuing advisories on Tropical Despair Ana and {that a} tropical cyclone formation isn’t anticipated in the course of the subsequent 5 days.

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