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Oil Leaps as Optimism About Iran Wanes

April 6, 2015 at 17:54 by Vladimir Vyun

Prices for crude oil jumped today as optimism about the Iranian nuclear deal waned. It looks like there are still plenty of obstacles before the final agreement could be reached, meaning that sanctions against Iran will not be lifted soon and the country will not renew its exports in the near future.

Additionally, there were reports that oil inventories in Cushing, Oklahoma, barely grew last week. It is another positive sign for crude as the unstoppable growth of US stockpiles was a major factor contributing to the commodity’s poor performance.

Over the longer term, the outlook for crude is still unfavorable as prospects for supply from Iran and growth of US reserves remain. But it looks like the increase of output will not be as big and as fast as it has been expected previously, meaning that pressure on oil was alleviated in a short term.

May futures for delivery of WTI crude oil leaped 5.74 percent to $51.96 per barrel as of 17:47 GMT on NYMEX today. Brent crude jumped 5.51 percent to $57.98 per barrel on ICE.

If you have any questions and comments on the commodities today, use the form below to reply.

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