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Oil Prices Decline Amid Fears Of “Iranian Barrels”

Baghdad Oil prices fell, amid fears that the market may face a flood of “Iranian barrels” if the sanctions imposed on it are lifted.

The price decline came today, despite more evidence of a recovery in the United States as oil consumption increases as the pandemic fades, while inventories of US crude oil and gasoline declined last week, according to government figures released ahead of the start of the traditional summer driving season.

Investors are weighing the growing demand in the United States, Europe and China against weak consumption in parts of Asia where the Coronavirus is still strong, at the same time, the OPEC + alliance is now working to ease production restrictions, and the Iranian talks may lead to the return of more supplies if the nuclear deal revived.

West Texas Intermediate crude for July delivery fell 0.47% to $ 65.90 a barrel on the New York Mercantile Exchange

For July, Brent crude lost 0.52% to $ 68.37 on the ICE Futures Exchange.

Ministers of the Organization of the Petroleum Exporting Countries and its allies will meet on June 1 to assess the market situation and their production policy.

In the United States, distillate stocks – a category that includes diesel – fell last week to the lowest level since April 2020, according to the Energy Information Administration. Meanwhile, the average gasoline supply for four weeks exceeded 9 million barrels per day for the first time since March of last year.

Source: National Iraqi News Agency