Crude oil closes higher as crude inventories fell more than expected and the Iran deal remains off track

Crude oil futures rose to a 3-week high Wednesday (Aug. 24) on signs that a revival of the Iran nuclear deal is fraught with uncertainty and a larger-than-expected drop in U.S. crude inventories last week.

  • WTI crude futures were up $1.15, or 1.2%, at $94.89 a barrel.
  • BRENT crude futures were up $1, or 1%, at $101.22 a barrel.

Crude oil futures were boosted by a report from the U.S. Energy Information Administration (EIA) that U.S. crude oil inventories fell by 3.3 million barrels last week.

According to reports, the U.S. will not consider any further claims against Iran.

The 2015 nuclear deal, also called the Joint Comprehensive Plan of Action, is an agreement between Iran and six major powers: China, France, Germany, Russia, and the United Kingdom, as well as the U.S., to prevent Iran from developing nuclear weapons.

The agreement was made in 2015 during the term of former President Barack Obama.

But in May 2018, President Donald Trump ordered the U.S. to withdraw from the agreement and tightened sanctions to the maximum, claiming Iran had violated the deal. With the arrival of President Joe Biden, the U.S. government is trying to negotiate a renewal of the nuclear agreement.

The U.S. has sent representatives to the negotiations with Iran in Vienna, and the European Union has been a mediator since April 2021, with the negotiations making some progress. Two working groups have been established, one on the nuclear issue and the other on lifting sanctions.

The U.S. and Iran have not yet reached an agreement on the content of the deal. Iran asked the U.S. to lift all sanctions to show its sincerity in the talks, while the U.S. responded that it would not lift sanctions if Iran did not stop uranium enrichment.

The Spot Market is Open

Thursday, August 25, 2022

Energy
Updated at
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Crude Oil
11.30

95.31

+0.42

+0.44%

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