Oil gains as traders weigh prospects of easing Middle East supply disruptions
XLE•Analysts point to ongoing uncertainty
"At the heart of the dispute remains Iran's nuclear programme and that is unlikely to be resolved quickly ... Iran also understands the importance of its geographical position and the leverage that the Strait of Hormuz provides, so the risk of prolonged uncertainty remains," said Priyanka Sachdeva, head of market insights at Phillip Nova.
The U.S. has halted its attacks on Iran for about a month and is seeking to impose greater economic pressure on Tehran, which has raised investors' expectations for an easing of Gulf supply disruptions.
"So far SPR (strategic petroleum reserves) releases helped to compensate for the disruption, but those sales will end soon, translating into faster falling commodity inventories if there is no improvement," said UBS analyst Giovanni Staunovo.
