Quick overview

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Crude oil prices increased slightly as Iran is expected to reject a US nuclear deal proposal, necessary for lifting sanctions on the major oil producer. The greenback’s weakness also contributed to the price rise.

Brent crude futures rose to nearly $65 per barrel, while US West Texas Intermediate crude approached $62 a barrel, by roughly 1% during the day.

An OPEC+ supply hike that fell below expectations amid high geopolitical risks led to a jump in the oil market.

ING noted on Tuesday that “the strength continued into early morning trading today.”

Following the Organization of the Petroleum Exporting Countries and its allies agreeing to maintain output increases in July at 411,000 barrels per day, less than some market participants had feared and the same hike as the previous two months, both contracts saw gains of almost 3% in Monday’s session.

Conversely, the dollar index measures its performance against six other major currencies. An Iranian ambassador stated on Monday that Iran was prepared to reject a US plan to resolve a long-standing nuclear conflict because it does not consider Tehran’s interests or moderate Washington’s position on uranium enrichment.

The failure of the US-Iranian nuclear negotiations could lead to further sanctions on Iran, which would restrict Iranian supplies and elevate oil prices. Concerns over supply may also be heightened by a wildfire in Canada’s Alberta province, impacting supply.