Oil on track for weekly gain as Iran worries about optimism in demand

On Friday, the motivation for oil trading was practically a repeat of the performance of the previous session, with a strong we economic data released on Thursday outweigh fears of a return to supplies Iran and contributing to a healthy weekly price gain for crude of over 5 percent.

Brent won 16 cents, 0.2 percent, at $ 69.62 per barrel at 0050 GMT while West Texas Intermediate was at $ 67.17 per barrel, rising 32 cents, or 0.5 percent; both benchmarks were on track to post weekly gains of 5 to 6 percent.

Edward Moya, senior market analyst at OANDA, said in a note that there is “a growing feeling that if the Iran nuclear deal is revived it will not include an immediate lifting of sanctions and that the oil market will not be quickly inundated with excess supplies.” .

However, recent events have caused some experts to cast a veil over the long-term fortunes of the big oil companies: in a bad moodof mentionned Friday that the credit risk of major oil producers increased thanks to Royal Dutch Shell lose a climate lawsuit this week and Exxon losing a battle with shareholders.

The rating agency added that the loss of Exxon board members to an activist hedge fund “likely portends similar results in future board elections of other US oil companies.” .

On the other hand, Patrick Pouyanne, Chairman and CEO of Franceof Total, ad Friday that his company’s climate strategy was supported by 91.88 percent shareholders, after weeks of setbacks.

Total is committed to 60 percent reduction in the average carbon intensity of energy products by 2050, and aims in the meantime for a 15 percent reduction by 2030 and 35 percent by 2040.

All this led Ed Morse, Global Head of Raw Materials Research at Citigroup, at State Friday that despite the current commodity boom and the recovery in demand after the pandemic, dependence on fossil fuels will last 10 to 15 years, because “demand is not growing as it did before”, and also because of the constant increase in renewable energies.

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