West TX Oil around $83 as Iran Seeks Halt to Price Drop

West Texas Intermediate crude rose a third day, extending its rebound from the lowest level in more than two years as Iran seeks to prevent further price declines. Brent in London advanced.

Futures climbed as much as 0.9 percent in New York. Iranian President Hassan Rouhani told the country’s oil ministry its use the “oil diplomacy tool” to prevent continued decreases, state-run Mehr news agency reported. WTI and Brent, the world’s most-traded oil futures, have collapsed into bear markets amid speculation of a global glut and signs of weakening demand.

Oil is paring its slump as banks including BNP Paribas SA and Bank of America Corp. predict the rout may be over, while Goldman Sachs Group Inc. says there is no oversupply. Saudi Arabia and Kuwait indicated the price fall doesn’t warrant immediate output cuts, while Iraq plans to increase exports next month.

Bloomberg

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