On Tuesday, 3 June, global oil prices continued to rise amid fears of supply constraints. The main reason was the report that Iran was ready to reject the US proposal for a new nuclear deal, which would make it impossible to ease sanctions against one of the world’s major oil exporters. This was reported by Reuters.
Brent crude oil futures rose 21 cents (0.32%) to $64.84 per barrel, while WTI rose 27 cents (0.43%) to $62.79. In the previous session, both contracts rose by almost 3% after OPEC+ decided to maintain July production growth at 411 thousand barrels per day.
The US dollar remained near a six-week low, which also contributed to the rise in prices: oil priced in dollars becomes cheaper for foreign buyers.
In addition, a wildfire in Alberta, Canada, reduced production by at least 344,000 barrels per day, which is about 7% of the national total.
Analysts point out that uncertainty in the negotiations between Washington and Tehran, along with production disruptions, is putting pressure on the market, keeping the cost of raw materials high.
