Oil rose a second day amid speculation Iran’s export increase will be gradual after it agreed to limit its nuclear program, curbing prospects a global glut may worsen.
Futures advanced as much as 0.9 percent in New York. Iran may boost exports by 200,000 to 400,000 barrels a day in 2016 and production will likely expand the following year, according to Goldman Sachs Group Inc. Israeli Prime Minister Benjamin Netanyahu condemned the accord as a “historic mistake.” U.S. crude inventories probably declined last week, a Bloomberg survey showed before an Energy Information Administration report Wednesday.
Oil’s rebound from a six-year low in March has faltered amid economic uncertainty in China and Greece and speculation a global glut will persist. A slow return of Iranian crude could mean it arrives just in time to satisfy growing demand, rather than inflating a surplus, according to Societe Generale SA.
West Texas Intermediate for August delivery rose as much as 46 cents to $53.50 a barrel in electronic trading on the New York Mercantile Exchange and was at $53.35 at 11:21 a.m. Sydney time. The contract gained 84 cents to $53.04 on Tuesday. The volume of all futures traded was about 13 percent below the 100-day average. Prices are little changed this year.
Brent for August settlement, which expires Thursday, gained as much as 26 cents, or 0.4 percent, to $58.77 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $5.43 to WTI. The more-active September contract climbed 26 cents to $58.94.
Source : Bloomberg