Oil rises on Iran, Russia and Canada supply concerns
Oil prices rose in early Asia trade on Tuesday on concerns about supply, with Iran set to reject a U.S. nuclear deal proposal that would be key to easing sanctions on the major oil producer, and with production in Canada hit by wildfires.
Brent crude futures gained 55 cents, or 0.85%, to $65.18 a barrel by 0000 GMT. U.S. West Texas Intermediate crude was up 59 cents, or 0.94%, to $63.11 a barrel, after rising around 1% earlier in the session.
Both contracts gained nearly 3% in the previous session after OPEC+ agreed to keep output increases in July at 411,000 barrels per day, which was less than some in the market had feared and the same hike as in the previous two months.
Geopolitical tensions supported prices on Tuesday. Iran was poised to reject a U.S. proposal to end a decades-old nuclear dispute, an Iranian diplomat said on Monday, saying it fails to address Tehran's interests or soften Washington's stance on uranium enrichment.
If nuclear talks between the U.S. and Iran fail, it could mean continued sanctions on Iran, which would limit Iranian supply and be supportive of oil prices.
The ongoing conflict between Russia and Ukraine continued to stoke supply concerns and geopolitical risk premiums.
Adding to supply worries, a wildfire in the province of Alberta in Canada has prompted a temporary shutdown of some oil and gas production, which could reduce supply.
According to Reuters calculations, wildfires in Canada have affected more than 344,000 bpd of oil sands production, or about 7% of the country's overall crude oil output.
The big jump in oil prices on Monday mostly reflected relief that the Organization of the Petroleum Exporting Countries and allies, including Russia, did not go ahead with a larger production hike than in the previous two months.
"With the worst fears not panning out, investors unwound their bearish positions they had built prior to the weekend's meeting," Daniel Hynes, senior commodity strategist at ANZ, said in a note.
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Trading Day: Teflon stocks glide higher
By Jamie McGeever ORLANDO, Florida (Reuters) - TRADING DAY Making sense of the forces driving global markets By Jamie McGeever, Markets Columnist Markets again lacked a unifying theme on Wednesday, as world stocks hit record highs, Wall Street ended mixed and Treasury yields tumbled, all against a backdrop of patchy U.S. economic data and a lack of clarity on global trade talks. In my column today I look at how, despite justifiable fears of tariff-fueled price rises later this year and beyond, the global forces of disinflation are stronger right now than the forces of inflation. More on that below, but first, a roundup of the main market moves. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. 1. U.S. private payrolls post smallest gain in over twoyears in May 2. Euro needn't dethrone dollar to draw reserve flood: MikeDolan 3. Trump tax-cut bill could cost $2.4 trillion, less thanearlier forecast 4. 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'Through reallocating HS2 funding, we're not only investing billions of pounds directly back into our smaller cities, towns and rural areas across the North and Midlands, but we are also empowering their local leaders to invest in the transport projects that matter most to their communities – this is levelling up in action,' he said in a statement that February. His government's 2023 announcement that HS2 Phase 2 funding was being redirected into various northern transport projects formed the basis of Wednesday's announcement by Rachel Reeves. Keen observers of politics watching Ms Reeves's speech could be forgiven for believing they had become trapped in the film Groundhog Day. But the refrain is so familiar from prime ministers in political hot water that it has become a predictable staple of these types of set-piece speech. Broaden your horizons with award-winning British journalism. 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