Oil Price Hits $71 As Price Rally Continues

International oil benchmark has hit $71 as the price rally continues.

Gatekeepers News reports that oil prices went higher on Wednesday as negotiations over the Joint Comprehensive Plan of Action (JCPOA) continued to fluctuate.

Also, a rebound in oil demand in China, the United States, and Europe threatened to outpace planned increases in supply.

As of 7:00 pm Nigerian time, the international crude oil benchmark, Brent, rose by $1.09 to trade at $71.34 per barrel, while the US West Texas Intermediate gained $1.11 to trade at $68.38 per barrel.

According to S&P Global Platts, any resolution on the JCPOA remained far from certain as the fifth and final round of negotiations proceeded in Vienna, putting into question the prospect of increased Iranian oil hitting the market.

The Head Negotiator of Iran, Abbas Araghchi, was quoted as saying, “I am not personally confident that we reach a conclusion in this round of talks. The delegations may possibly need to return to their countries for more consultations,”

Similarly, Russian envoy to the United Nations, Mikhail Ulyanov, had agreed with Araghchi, in a tweet that “the remaining outstanding issues are rather complicated and a very creative and responsible approach is needed to find solutions.”

Gatekeepers News gathered that crude oil prices were also supported by a strong demand outlook for regions undergoing economic rebounds, including China, the US, and Europe.

Rystad Energy oil markets analyst, Louise Dickson said, “the oil market welcomed the Organization of the Petroleum Exporting Countries and its allies’ decision to stick with their existing production plan, and in conjunction with positive global demand indications, prices are gaining further today.”

While expecting a recovery in demand, on Tuesday, OPEC+ agreed to maintain their plan to gradually ease supply curbs through July.

According to S&P Global Platts, OPEC would convene on June 24 and then hold an expanded meeting on July 1, with Russia and nine other partners in the OPEC+ supply accord to decide on production quotas for August and beyond.