Reaching a two-year high:
It was during the morning of this Tuesday, June 22, that the $75 mark was crossed by the barrel of crude oil. This is the first time the black gold has reached this level since April 2019. This rise is undoubtedly related to the Iranian nuclear negotiations that are still ongoing since the election of the ultraconservative Ebrahim Raissi.
Thus and this morning at 9am, the barrel of Brent North Sea for delivery in August reached $ 75.30, its highest level in two years. It then fell slightly to 74.78 dollars at around 10:40 am, a loss of 0.16%.
In US oil, WTI for July delivery, which is the last day of trading, lost 0.43% to $73.34 after peaking yesterday at $73.96, the highest since October 2018.
The reasons for this bullish trend that continues:
On the side of the causes of this rise in black gold prices, it is known that the price continues to climb because of the idea that the election of Ebrahim Raissi is currently complicating the negotiations about the Iranian nuclear issue. At least that's what analysts think as talks are taking place in Vienna in an attempt to salvage the agreement that was signed in the Austrian capital in 2015. Ebrahim Raissi said he would not allow negotiations for the sake of negotiations. However, the latter clarifies that all negotiations that guarantee Iran's national interests will certainly be supported. Investors are looking to see whether or not the sanctions currently in place to prevent Iran from exporting its oil production can be eased, which could have a significant impact on supply and therefore on prices.
On the side of the US government, the White House indicates that there is no diplomatic relationship with Iran or plans to meet with the leadership and believes that the person in charge of decisions in that country is the Supreme Leader.
As for the slight decline in the price of black gold that was observed just after its surge, it is mainly due to the strength of the greenback, which is the reference currency for international prices. However, the strength of the dollar over the past week has not prevented the record price of a barrel of crude from being broken, which suggests that demand remains high and not speculative.