Oil fears decline as traders discount Iran doomsday scenario

The fever that gripped oil markets in recent weeks has begun to subside as traders discount the likelihood of a doomsday scenario in Iran, yet many remain cautious due to a variety of geopolitical risks.

“That’s not what we expect. But in such a case, it wouldn’t surprise us to see oil spike into the $US90 range,” he said. “We think the more likely outcome is for oil to remain in the US$55 to US$65 range.”