UBS sees modest oil price pullback if mideast tensions don't disrupt supply
Feb 24 (Reuters) - UBS on Tuesday said it expects a modest decline in oil prices in coming weeks provided there is no escalation of tensions in the Middle East that could disrupt supply.
"A gradual fading of the risk premium and easing supply disruptions resulting in a better supplied market should bring Brent back into the" $60 to $70 a barrel range, the investment bank said in a note.
Brent crude futures LCOc1 were trading near their highest since July 31 on Tuesday, while U.S. crude futures CLc1 were close to their firmest levels since August 1. O/R
Iran and the U.S. will hold a third round of nuclear talks on Thursday in Geneva, Oman's Foreign Minister Badr Albusaidi said on Sunday. The U.S. wants Iran to give up its nuclear programme, but Iran has adamantly refused, and denied it is trying to develop an atomic weapon.
The risk of U.S. military action against Iran that could disrupt oil flows through the region has put upward pressure on prices in recent weeks.
UBS also set an end-March 2027 Brent forecast of $67 per barrel and widened its assumed WTI-Brent discount to $4 a barrel from $3.
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