Oil Swings As Iran’s Leader Casts Doubt On Talks With US

Oil erased an earlier decline after Iran’s supreme leader expressed skepticsim over talks with the US. 

Brent briefly jumped to touch $66, before erasing gains to trade little changed.

Ayatollah Ali Khamenei said in a speech that his country doesn’t know what will happen in talks with the US over the country’s nuclear deal, but that he doesn’t think they will yield a result. 

Oil prices swung sharply last week on a host of headlines around talks with the US focusing around the Iran’s nuclear program. Tehran said its ability to enrich uranium was “absolutely non-negotiable,” a key US demand. A nuclear deal could pave the way for an easing of sanctions, including on oil exports.

Crude has rebounded this month, after sliding almost 16% in April, following an easing in the trade war between the US and China that boosted risk sentiment. However, any indication of a reduction of sanctions on Russia, or fellow OPEC+ producer Iran, could potentially add more barrels to a global market that is already facing a glut this year.

• Brent for July settlement dropped was steady at $65.38 a barrel as of 9:21 a.m. in London.

• WTI for July delivery trade at $62.02