(London) Oil prices hesitated on Monday in the face of the spread of the new Corona virus (Covid-19), especially in India, and negotiations are likely to lead to an easing of economic sanctions against Iran.
At around 5:30 am, the price of a North Sea Brent barrel for June delivery was $ 66.67 in London, down 0.15% from Friday’s close.
In New York, a barrel of WTI crude for May fell 0.08% to $ 63.08.
Last week, the two reviewers posted a gain of about 6%, and found more prices seen for about a month.
But the renewed strength of COVID-19 in India, a booming market for crude demand, was among the factors worrying investors on Monday.
On Monday, the country set a new record for new infections: 273,810 cases over 24 hours. It is the fifth day in a row that the country has surpassed 200,000 new cases.
Therefore, the authorities in New Delhi will impose, as of Monday evening, 20 million people in the Indian capital, for a period of one week.
“At the same time, investors are watching the tensions between the United States, Iran and Russia that could affect the crude oil markets,” said Stephen Innes of Axi.
The Iranian nuclear talks made “progress” in Vienna although “serious differences” continued, participants said Saturday.
“Any progress in the direction of lifting sanctions would be bearish in the short term,” said Warren Patterson and Wenyu Yao, analysts at ING.
Iran, whose oil industry is under embargo by the United States, currently produces 2.1 million barrels per day of crude oil, according to the latest figures released by the Organization of the Petroleum Exporting Countries (OPEC) including the country part of it.
Three years ago, before the apparent collapse of US economic and financial sanctions, Tehran produced 3.8 million barrels per day, a volume that is difficult to absorb today by a market still weak due to the epidemic.