Monday morning’s oil quotes are down slightly. Brent on September contracts is trading at $56.9 a barrel and WTI with August delivery is on offer for $50.8.
Quotes are under pressure since investors are weighing up the possible consequences of Iran’s sanctions being lifted. They’re mostly worried by a rise in Iranian production. Speculators have reduced their bullish positions on WTI to a minimum unseen since March when the negotiations on Iran’s nuclear program became more active.
There is no reason for the price of oil to rise. US reserves and rigs are lessening at a snail’s pace. The OPEC countries aren’t dropping their production, whilst demand hasn’t increased significantly. We reckon that oil prices will remain stable for the meanwhile. The price of Brent is unlikely to pass $60 a barrel this week.