The Brent value increased today following supply worries due to prolonged disruptions from South Sudan and OPEC member Libya.
According to Reuters, Brent crude increased by $0.21 to $106.56 a barrel, while US crude gained $0.37 to $94 a barrel.
The Brent was on decline during the early trade which was capped by supply concerns from prolonged outages in Africa, outweighing the impact of a deal aimed ending a decade-long dispute over Iran’s nuclear programme.
But the crude prices are expected to decline in near future as Iran halted its most sensitive nuclear operations under a preliminary deal with world powers, winning some relief from economic sanctions on Monday.
The US is set to allow the six current customers of Iranian oil to maintain their purchases at current reduced levels for the six-month duration of an interim nuclear deal between Iran and world powers following the fulfillment of initial nuclear commitments under the deal by Iran.
While Libya seems to be making progress in increasing exports as it plans to take on protesters who have seized eastern ports vital for lucrative oil exports within the next few days.
South Sudan’s soldiers have reclaimed the oil state capital Malakal from rebels though it has been denied by rebels.
Image: Short-term supply related issues will maintain to prop up crude prices. Photo: courtesy of Victor Habbick.