Oil prices jumped 2% on Friday after three days of losses, driven by a storm forming in the Gulf of Mexico. However, they are on track to record weekly losses as investors brace for the return of Iranian crude following officials' announcements that Tehran and world powers made progress in nuclear deal talks.
Brent crude settled up $1.33, or 2%, at $66.44 a barrel, while West Texas Intermediate rose $1.64, or 2.65%, to settle at $63.54 a barrel. The U.S. National Hurricane Center indicated that the chances of a storm forming over the western Gulf of Mexico becoming a hurricane are 40% over the next couple of days.
The gains were tempered by expectations that Iran could add a million barrels of crude or more per day to oil production later this summer. The two benchmarks declined nearly 3% over the week after Iranian President Hassan Rouhani stated that Washington was prepared to lift sanctions on Iran's oil, banking, and shipping sectors.
Nonetheless, investors remain optimistic about a rebound in demand this summer as vaccination programs in Europe and the United States allow more people to travel.
