Oil pulled back after hitting fresh multiyear highs on Monday, as investors awaited the outcome of this weeks talks between Iran and world powers over a nuclear deal that is expected to boost crude supplies.
Brent crude futures for August fell 66 cents, or 0.9, to 71.23 a barrel by 0645 GMT, after earlier hitting 72.27, their highest since May 2019. U.S. West Texas Intermediate crude for July touched 70 for the first time since October 2018 but reversed course to be at 69.10 a barrel, down 52 cents, or 0.8.
Investors may have sold off some contracts to take profit when WTI hit 70, said Avtar Sandu, a senior commodities manager at Phillips Futures in Singapore.
The primary concern is about Iranian barrels coming back into the market but I dont think there will be a deal before the Iranian presidential election, he added.
Data showing a 14.6 yearonyear drop in Chinas crude oil imports in May on Monday also weighed on prices.
However, Brent and WTI have risen for the past two weeks as fuel demand is rebounding in the United States and Europe after governments loosened COVID19 restrictions ahead of summer travel.
Global oil demand is expected to exceed supplies in the second half despite a gradual easing of supply cuts by OPEC producers, analysts say.
A slowdown in talks between Iran and global powers in reviving a 2015 nuclear deal and a drop in U.S. rig count also supported oil prices.
Iran and global powers will enter a fifth round of talks on June 10 in Vienna…