Oil Prices Climb as Iran Nuclear Talks Drag

Oil prices rose on Monday, underpinned by strong demand during the summer driving season and a pause in talks to revive the Iran nuclear deal that could indicate a delay in resumption of supplies from the OPEC producer.
Brent crude for August gained 23 cents, or 0.3%, to $73.74 a barrel. 
US West Texas Intermediate crude for July was at $71.94 a barrel, up 30 cents, or 0.4%, Reuters reported.
Both benchmarks have risen for the past four weeks amid optimism over the pace of global vaccinations and a pickup in summer travel. The rebound has pushed up spot premiums for crude in Asia and Europe to multi-month highs.
"The rebound in demand in the northern hemisphere summer is so strong that the market is becoming increasingly concerned about further sharp drawdowns on inventories," ANZ analysts said in a note.
Negotiations to revive the Iran nuclear deal took a pause on Sunday after conservative judge Ebrahim Raeisi won the country's presidential election. Two diplomats said they expected a break of around 10 days.
The election could delay the nuclear deal, as Iran has insisted that US sanctions placed on Raeisi be removed before an agreement is reached, analysts from ANZ, Commonwealth Bank of Australia and ING said.
However, CBA analyst Vivek Dhar said Raeisi's win is unlikely to derail efforts to revive the nuclear deal, given the potential economic windfall for Iran if sanctions are lifted.
A deal could see Iran exporting an extra 1 million barrels per day, or 1% of global supply, for more than six months, from its storage facilities.