Oil rises 1% on US-Iran deal doubts

NEW YORK:

Oil prices rose more than 1% on Wednesday after US President Donald Trump said the new ceasefire agreement with Iran was not final and the Iran war could resume if he is unsatisfied, but concerns over excess supply next year limited the gains.

Brent crude futures were up 89 cents, or around 1.1%, at $79.85 a barrel at 1534 GMT and US West Texas Intermediate gained 91 cents, or 1.2%, to $76.96. Both contracts hit their lowest since early March earlier in the session.

Trump said on Wednesday that a memorandum of understanding with Iran was not final, and that he could resume a bombing campaign if he did not like it or if Iran did not "behave". "(There's) still a bit of uncertainty in terms of the US situation ... (it) makes sense for oil to bounce back from these levels after staging what has been quite a sharp decline in the last few days," said Fawad Razaqzada, market analyst.