Oil prices rise as Iran deal stalls, Russian supply amid conflict

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Oil prices rose at the start of Asian trade on Friday on the prospect that a stalled Iran nuclear deal and Moscow’s renewed push for its invasion of Ukraine would further restrict global supplies.

Brent crude futures gained 16 cents, or 0.2%, to $90.62 a barrel at 0020 GMT, while US West Texas Intermediate (WTI) crude futures rose 22 cents to $83.71 a barrel.

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Oil edged higher after a senior US State Department official said efforts to revive the 2015 Iran nuclear deal had stalled due to Tehran’s insistence on closing investigations of the UN nuclear watchdog.

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“We’ve hit a wall” because of Iran’s stance, the US official told reporters on the sidelines of the UN General Assembly, adding that nothing had happened this week to suggest the Iran is ready to change its position. These remarks dampened expectations of a resurgence in Iranian crude oil.

Prices were also supported by Moscow’s decision to pursue its biggest conscription since World War II, raising fears that an escalating war in Ukraine will continue to tighten oil supplies.

The rebound in demand for crude oil in China, which is the world’s largest oil importer, supported crude prices.

Central bank interest rate hikes, including the 75 basis point hike by the US Federal Reserve on Wednesday, as well as increases by the Swiss National Bank, the central bank of Norway and the central bank of Norway. Indonesia, have constrained oil prices by increasing the likelihood of economic downturns that would erode fuel demand. (Reporting by Laila Kearney in New York; Editing by Leslie Adler)


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