Crude oil started the day below the $94.00 a barrel level after world powers and Iran took a step forward in ending the dispute over Tehran`s nuclear program; however the worries over supplies at other oil exporting countries supported prices.
The worries over the prolonged disruptions from South Sudan and Libya are supporting oil prices. While Libya plans to remove protesters who have seized eastern ports within the next few days, in South Sudan the president said his soldiers had seized the regional capital Malakal back from rebels but later the report was dismissed by insurgents.
But advanced talks between Iran and world powers may prevent prices from rising further. The US committed to its premises easing some sanctions on Tehran as part of a nuclear accord that began taking effect on Monday, in exchange for steps that Tehran had taken.
“Short-term supply related issues will continue to prop up oil prices. The Iran situation appears to be making progress and that is some of the geopolitical tension off, but lifting oil sanctions will be the last to happen”, said Victor Shum from IHS Energy Insight.
Meanwhile, the US Energy Department’s statistical arm will release supply data on January 23, a day later than usual, because of the Martin Luther King Day holiday on Monday, while the American Petroleum Institute will release its report tomorrow.
