Under pressure from Iran’s possible increase in production, oil prices on the international market on Monday fell from their highest levels in the previous two years.
In the London market, the price of a barrel fell 22 cents from the previous close to US$71.67. It had previously hit the highest level since May of US$72.27. In the US market, the price of a barrel was US$69.41 per barrel, which was 21 cents lower than Friday.
Oil prices have risen in the past two weeks. As the Organization of the Petroleum Exporting Countries (OPEC) and its allies cut production during the demand period, the barrel in London has risen by more than 37% since the beginning of the year after the pandemic collapse.
“The support for oil prices remains strong,” Commerzbank analyst Eugen Weinberg said, adding that today’s price adjustments after recent growth are “almost not surprising.”
The prospect of increased Iranian supplies and declining Chinese crude oil imports also pushed up prices. Iran and the global powers will start the fifth round of talks in Vienna on June 10, which may include the lifting of US sanctions on Iran, related to oil exports.
OPEC announced today that the price per barrel of its member oil reference basket on Friday was US$70.21, which means it was up 32 cents from the previous trading day.