WTI eyes more upside on delays in Iranian talks and ban on Russian oil

West Texas Intermediate (WTI), futures on NYMEX, eyes more upside this week as the US administration is set to tap the pause button on oil imports by nations from Russia. The former is in conversation with its European partners at the prospect of banning the import of Russian oil in a coordinated way along with a stipulation of appropriate global oil supply.

Secretary of State Antony Blinken says the US is "looking" at banning Russian oil and gas, but says the US is unlikely to do so without permission from European countries. This is to be done in response to the Russian invasion of Ukraine. The Russian arbitrariness has spooked the entire world and has dampened the supply chain in Europe and its multiplier effects on commodity prices. Adding to that, the Russian military activity on Europe’s largest nuclear power station in Ukraine has forced the Western leaders to come forward with more sanctions on the Kremlin.

Last week, a sense of pessimism was witnessed in the oil prices on the likely removal of sanctions on the Iranian nuclear deal. Talks to revive Iran's 2015 nuclear deal with world powers were mired in uncertainty on Sunday following Russia's demands for a U.S. guarantee that the sanctions it faces over the Ukraine conflict will not hurt its trade with Tehran, as per Reuters.

The Iran nuclear deal was the only bearish indicator, which was restricting oil prices to move higher. The delay in the potential contribution of Iranian oil to the global supply has unleashed bulls in the oil counter. WTI oil kissed the $115 mark last week and is expected to elevate its momentum further on increasing military activities in Ukraine.