Oil price set to surge further on delays in Iranian talks

Last week, the Brent benchmark LCOc1 rose 21% to close at US$118.11 a barrel and U.S. crude gained 26% CLc1 to close at $115.68, levels not seen 2013 and 2008, respectively, as Russia struggled to sell oil amid fresh sanctions. (Oil drilling in Russia. - File pic)

NEW YORK: Oil prices are set to surge further this week due to delays to the conclusion of Iranian nuclear talks and the potential return of Iranian crude to global markets, which are already suffering from Russian supply disruptions, analysts said.

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.

China has also raised new demands, according to sources.