Oil edges up as cautious optimism surrounds US-Iran talks

KUWAIT CITY, Kuwait — Brent crude rose 0.24% to $72.10 a barrel ahead of the long weekend in the United States, while West Texas Intermediate gained 14 cents to $68.83. Reuters reported that cautious optimism over US-Iran efforts to ease Middle East tensions supported prices. Both benchmarks had fallen in the previous session to their lowest levels since before the US-Israel-Iran war in late February. Brent is down 0.02% since the start of the week and WTI is up 0.12%, producing the narrowest weekly trading range in months for both grades. Tim Waterer, senior market analyst at KCM Trade, said traders want to believe peace efforts will continue but are waiting for concrete evidence. Some countries are increasing output in anticipation of the reopening of the Strait of Hormuz, through which roughly one-fifth of global oil and LNG supply passed before the Gulf war. Kuwait raised daily production from 580,000 barrels in May to 1.65 million barrels in June. Saudi Arabia, meanwhile, has moved to spot pricing to accelerate sales in Asia.