Oil futures: Brent jumps after US homes price inflation hits 7-yr high

London (Quantum Commodity Intelligence) – Brent has jumped after the US market opened Tuesday, and shortly after data showed US home prices were up more than expected in March.

By 1620 UK time, July Brent was trading up $0.11/b at $68.57/b, after briefly flirting with $68/b before US markets opened.

At the same time, July WTI was trading $66.29/b, up $0.24/b.

U.S. home prices rose 13.2% in March from a year earlier, the biggest rise in more than seven years, and up from 12% year-on-year in February, according to the S&P/Case Shiller survey.

Crude oil futures have recovered this week amid doubts Iran and the west will quickly strike a new nuclear deal. 

Iran and the U.N. nuclear watchdog are extending a recently expired monitoring agreement by a month, both sides said on Monday, avoiding a collapse that could have pitched wider talks on reviving the 2015 Iran nuclear deal into crisis.

On Sunday US Secretary of State Antony Blinken raised doubt regarding Tehran's commitment to the deal.

"We know what sanctions would need to be lifted if they're inconsistent with the nuclear agreement," he said. 

Indirect talks are expected to resume this week in Vienna.

Meanwhile, the market was buoyed by Monday's Goldman Sachs report saying the case for higher prices remained intact, even with a potential increase in Iranian exports.

"Even aggressively assuming a restart in July, we estimate that Brent prices would still reach $80 per barrel in fourth quarter 2021," the bank said in a note.

Oil prices retreated last week on reports of constructive talks for a deal that would lift oil, shipping and banking restrictions against Iran.