Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Oil Falls on Iran Talk; Weak Dollar Limits Loss

CommoditiesMay 18, 2021 03:44PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Barani Krishnan - Oil prices settled down more than 1% on Tuesday on selling driven by talk that Iran was on the cusp of a nuclear deal to end U.S. sanctions on its crude, before the Russian diplomat who made the news basically said he was misquoted.

The dollar’s plunge to three-month lows also helped limit losses in oil, which initially fell more than 2% on the day.

New York-traded West Texas Intermediate, the benchmark for U.S. crude, settled down 78 cents, or 1.2%, at $65.49 per barrel. It earlier to a session low of $64.17.

London-traded Brent, the global benchmark for crude, closed down 75 cents, or 1.1%, at $68.71. Brent fell to as low as $67.30 intraday.

Oil tumbled initially on reports quoting Mikhail Ulyanov, Russia's permanent representative to the Vienna-based international organizations, as saying that "great progress" had been achieved on negotiations between Tehran and world parties for a nuclear agreement and "important news will likely come by tomorrow."

Ulyanov, however, denied later that a deal was in the cards. “I did not say there was any breakthrough in the Iran nuclear talks. There is significant progress, but issues remain,” he added.

Oil got a reprieve from selling after the Dollar Index, which pits the greenback against the euro and five other major currencies, fell to a session low of 89.68 — a trough since Feb. 25.

Iran has said previously that it could return “within months” to its peak oil production of nearly 4 million barrels a day once the sanctions on its oil — imposed by former U.S. president Donald Trump in 2018 — are lifted. Sources familiar with the country’s crude output currently estimated its production at around 2 million barrels daily. 

Analysts say the additional supply from Iran, whenever that comes, will force a reconfiguration of global oil supply that could be more bearish than bullish — especially with questions about demand resurfacing after new coronavirus flare-ups in No. 3 oil consumer India.

Oil traders are also on the lookout for a weekly snapshot on U.S. oil supply-demand due from the API, or American Petroleum Institute.

The API snapshot, scheduled  for release at 4:30 PM ET (20:30 GMT), will be released before Wednesday’s official report from the U.S. Energy Information Administration on supply-demand of petroleum products for the week ended May 14.

According to a consensus of analysts tracked by, U.S. crude stockpiles likely rose by 1.6 million barrels last week, versus the drop of 427,000 barrels noted in the previous week to May 7.

Gasoline inventories likely declined by 886,000 barrels versus the rise of 378,000 in the prior week, consensus shows.

And stockpiles of distillates, made up of diesel and heating oil, likely contracted by 386,000 barrels last week after dropping 1.7 million barrels a week earlier.


Oil Falls on Iran Talk; Weak Dollar Limits Loss

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email