"Some expectations that negotiations between Iran and the United States may lead to a resumption of Iranian oil exports is limiting the upside of oil prices," said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
In addition, Saudi Arabia has volunteered to cut its own output by one million barrels per day (bpd) to help avoid oversupplying a market suffering from a collapse in demand due to the coronavirus pandemic.
Under existing curbs, OPEC, led by Saudi Arabia, and non-OPEC producers, led by Russia, have cut just over 7 million barrels per day (bpd), while Saudi Arabia has made an additional voluntary reduction of 1 million bpd.
India on Wednesday reported its highest one-day tally of new infections and deaths and said a new "double mutant" variant of the coronavirus had been found.
However, it is not very clear if the contract bounces towards $61.70 first, before breaking $59.41. Signals on the hourly chart suggests a small chance of the bounce.
"The market's probably right to think at this price level and given what the fundamentals are doing, there'll be more supply coming into the market over time."
