Brent oil price higher than in two years

The demand for oil is increasing worldwide, driving oil prices up. These have risen to their highest level in several years. A barrel (159 liters) of North Sea Brent rose by up to 64 cents to $ 71,99. This is the highest level since May 2019. At the beginning of the corona pandemic in spring 2020, the Brent price had dropped to $ 15,98.

The price of a barrel of the US West Texas Intermediate (WTI) rose up to 57 cents to $ 69,40 on Thursday. This variety was last more expensive in October 2018.

The oil prices are for some time now in flight, as demand picks up again as a result of the economic recovery. The most recent evidence of this has been falling inventories in the United States, according to dealers.

Crude oil producers remain cautious about their medium-term orientation. True, confirmed the oil cartel opec and its cooperation partners - the so-called Opec + - a planned increase in production from July during a meeting on Tuesday. However, no price was announced for the rest of the year.

"The market should easily absorb this amount"

According to the assessment of the raw materials expert Eugen Weinberg from Commerzbank, Opec + has been extracting around 2,1 million barrels more crude oil per day since May with the gradual expansion of the production volume.

"The market should easily absorb that amount," Weinberg said. Since the OPEC + meeting did not talk about the output after July, this topic should be discussed at the next meeting in a month's time.

Investors are keeping an eye on nuclear negotiations with Iran

In addition, investors in the oil market continue to have the Negotiations on the Iranian nuclear program in view. Only in the event of an agreement can the OPEC country Iran hope for fewer sanctions and more oil exports. However, Iran itself has dampened hopes of an early agreement on the nuclear dispute with the United States. "We have come closer, but we are still a long way from reaching an agreement," said Deputy Foreign Minister Abbas Araghchi, according to the Iranian media.

Therefore, he does not want to confirm speculations that the nuclear negotiations in Vienna would go into the final round next week. Before that, according to Araghchi, the USA and other contractual partners would have to "make some difficult decisions." Iran's final decision will definitely not be made in Vienna, but in Tehran, said the deputy minister and Iran's head of delegation in Vienna.

A new problem with the Vienna negotiations is the impending change of political power in Iran. The top favorite in the presidential election in two weeks' time is the arch-conservative cleric Ebrahim Raisi, who always sharply criticized the 2015 Vienna nuclear deal. According to observers, it is rather questionable whether he will continue President Hassan Rouhani's moderate course. It is also currently unclear who will soon be appointed as chief nuclear negotiator and who will lead the negotiations for Iran.