Oil futures: Brent eyes $73/b, WTI consolidates above $70/b

London (Quantum Commodity Intelligence) – Crude oil futures Wednesday resumed the strong upwards momentum hitting fresh two-year highs on demand growth prospects, although pulled back in afternoon London trading. 

"Prices are being lent buoyancy by the tightness on the oil market in view of the robust recovery of demand worldwide, the disciplined compliance with production quotas on the part of OPEC+, and the inadequate response of non-OPEC oil producers," said Commerzbank in a note Wednesday

Brent futures for front-month August were trading at $72.37/b (1500 GMT), compared to Tuesday's settle of $72.22/b, having reached a high of $72.88/b earlier in the session..

At the same time July WTI was trading $70.08/b, slightly up from Tuesday's settle of $70.05/b, but off the high of $70.62/b.

The final round of talks ahead of Iran's elections to reach a nuclear deal with Iran start in Vienna Wednesday, but doubts have been cast on a successful outcome.

"…observers are beginning to accept that it will take some time yet before Iranian oil exports return to the market. The US Secretary of State expressed doubts about Iran's willingness to comply with the conditions," said Commerzbank in a market note.

US Secretary of State Antony Blinken said Monday that that Iran's nuclear program has been out of control after the US withdrawal from the Joint Comprehensive Plan of Action (JCPOA), while Iran's "nuclear breakout time" could narrow to weeks if not restrained.

Blinken followed up Tuesday saying, "I would anticipate that even in the event of a return to compliance with the JCPOA, hundreds of sanctions will remain in place.'