Oil prices jump on view Iranian oil will not cause glut

NEW YORK: Oil prices rose on Monday as a demand bump fueled by COVID-19 vaccination drives gave traders optimism that the market can absorb any Iranian oil that would come on the market if Western talks with Tehran lead to the lifting of sanctions.

Prices also got a boost on expectations that a new deal is less likely than it was last week, said Bob Yawger, director of Energy Futures at Mizuho in New York.

“The Iranians and western powers cannot get the details worked out that will get this deal signed and delivered,” Yawger said.