Fake oil move on fake news
Oil prices cut some losses after falling more than $3 a barrel on Thursday after the White House called news that the US and Iran were moving closer to an oil export deal false.
Oil fell sharply after a report citing two unnamed sources as saying Iran and the US were moving towards a temporary deal that would trade some sanctions relief for cuts in Iran's uranium enrichment.
But the trade turned on skepticism that oil sanctions would be lifted quickly and after the White House said the report was false.
Brent crude fell 97 cents, or 1.3%, to $75.98 a barrel by 13:35 ET (1737 GMT), after falling $3 earlier. U.S. West Texas Intermediate oil fell $1.11, or 1.5%, to $71.42.
"This message is false and misleading," a spokesman for the White House National Security Council said, referring to an article on the Middle East Eye website.
A 2018 US executive order reinstated sanctions on Iran's oil, banking and transportation sectors after the Trump administration pulled out of the 2015 nuclear deal.
A larger-than-expected increase in US gasoline inventories also raised concerns about demand, while US crude inventories fell slightly by 451,000 barrels.
At an OPEC+ meeting on Sunday, Saudi Arabia said it would cut crude oil production by 1 million bpd in July, on top of a broader deal to limit supplies until 2024, as the producer group seeks to boost falling prices.
There is a growing consensus that the central bank will skip a rate hike, which could push oil prices higher before the supply slump starts to deplete global oil reserves, Varga added.
Economists polled by Reuters expect the US Federal Reserve will not raise interest rates at its June 13-14 meeting. But a significant minority expect at least one more increase this year.
However, the surprise rate hike in Canada gave investors a second reminder in a week after the Australian central bank tightened monetary policy that the rise in global interest rates is not yet over.
The US dollar weakened slightly on Thursday, making oil cheaper for buyers holding other currencies.
Both oil benchmarks rose about 1% on Wednesday thanks to Saudi Arabia's plan, though gains remain limited by rising US fuel inventories and weak economic data from China.