OIL CLIMBS HIGHER THAN $72 AS IRAN NUKE TALKS END SANS DEAL

Oil climbed above $72 a barrel after the latest talks between world powers and Iran to revive a nuclear deal ended without an agreement, a day after the OPEC producer elected a new president, Sharon Cho and Serene Cheong reported for Bloomberg News.

Futures in New York rose 0.9% after increasing for a fourth week. Diplomats adjourned a sixth round of meetings with significant gaps remaining to mend the accord, the third time since talks began in April that negotiators have missed self-imposed deadlines to rejuvenate the agreement.

A revived deal would likely lead to the easing of US sanctions and higher crude flows.

The election of conservative cleric Ebrahim Raisi as Iran’s president, however, may complicate future talks. Raisi is subject to US sanctions and Tehran insists they must be removed as part of an agreement to revive the pact.

Abbas Araghchi, Iran’s lead negotiator in the nuclear talks, said one of the most serious matters discussed in the latest round was Tehran’s need for a guarantee from the US that future governments won’t exit the deal again -- as former President Donald Trump did in 2018 -- or reimpose sanctions, Andrew Janes also reported for Bloomberg News.

Activity in US oil fields is showing more signs of recovery from the worst effects of the COVID-19-induced slowdown last year, according to the closely watched rig count. China’s Silk Road Fund and Hassana Investment Co., controlled by the Saudi Arabian government, joined a group investing $12.4 billion in Saudi Aramco’s oil pipelines.

Crude storage tanks that were brimming a year ago are beginning to empty in the main US distribution hub, the latest sign of rising demand in the world’s biggest oil-consuming country.

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