Crude oil prices rose for the first time in five sessions on Tuesday as comments from U.S. Secretary of State John Kerry raised concerns about Iran’s nuclear deal, while the ease in the dollar gave some room for commodities to recover some of their losses.
Kerry stressed that remarks from the Iranian Supreme Leader Ali Khamenei that included a pledge to defy American policies in the region was “very disturbing.”
In fact, Kerry’s concern raised speculations the implementation of the deal may not be as smooth as expected, cutting some oversupply concerns with the comeback of Tehran after the removal of western sanctions.
On the other hand, the dollar faced some selling after rising for six straight sessions until Monday on the Fed’s determination to raise interest rates this year.
The dollar index, which tracks the green currency’s movements versus a basket of major currencies, slipped to a bottom of 97.07, compared to the opening at 98.17.
Brent crude oil climbed to a high of $50.80 a barrel after hitting a bottom of $50.08, while Brent crude rose to a high $56.96.
Later in the day, eyes will focus on the American Petroleum Institute (API) report, as it will provide an update about U.S. crude inventories built last week, ahead of Wednesday’s EIA government figures.