Oil prices rose on Friday after three days of losses, but headed for a weekly drop amid potential return of Iranian supplies.
Brent crude futures for July settlement rose half a percent to $65.44 a barrel, after having fallen 2.3 percent on Thursday. Prices are down about 5 percent this week, the most since March 19.
West Texas Intermediate crude futures for July delivery rose over 1 percent to $62.61 a barrel, after losing 2.2 percent the previous day. The June contract expired on Thursday.
Brent oil was heading for the biggest weekly decline since March after top policymakers said they could lift sanctions prohibiting Iranian oil export.
The Persian Gulf nation’s president, Hassan Rouhani, said world powers have accepted that major sanctions will be lifted, though details and finer points are still awaited.
Some of the most optimistic analysts estimate the country could return to pre-sanctions production of 4 million barrels a day in as little as three months.
The potential for additional Iranian oil exports is being reflected in Brent’s prompt timespread, which is nearing a bearish contango structure.
The material has been provided by InstaForex Company – www.instaforex.com