Oil prices sink $2/bbl on possible Iran oil exports, rising interest rates

NEW YORK: Oil prices slumped by about $2 a barrel on Thursday in volatile trade as investors braced for the possible return to global markets of sanctioned Iranian oil exports and on worries that rising US interest rates would weaken fuel demand.

Brent crude settled at $99.34 a barrel, shedding $1.88, or 1.9%. US West Texas Intermediate crude settled at $92.52 a barrel, losing $2.37, or 2.5%.

Talks between the European Union, the United States and Iran reviews US response to EU nuclear text for revival of 2015 pact - Reuters to revive the 2015 nuclear deal are continuing, with Iran saying it had received a response from the United States to the EU’s “final” text to resurrect the agreement.

US oil may rise into 95.67-$96.84 range

“Nobody wants to jump in here and commit to a size position when you can get ambushed by an Iranian headline at any given moment,” said Bob Yawger, director of energy futures at Mizuho, citing thin trading volumes during the session. Investors also were waiting for scheduled remarks on Friday by US Federal Reserve Chair Jerome Powell at the Kansas City Fed’s Economic Policy Symposium in Jackson Hole, Wyoming.