Oil rise on supply shortage fears

Oil drilling rigs

Oil prices rose in early session today, June 3, amid supply pressures as a fire in Alberta, Canada, temporarily shut down some oil and gas production, and a potential failure of nuclear talks between the US and Iran.

Brent crude was trading up 0.35% at $64.86 a barrel, at 08:06 am Makkah time. West Texas Intermediate (WTI) crude rose 0.45% to $62.81 a barrel.

An Iranian diplomat said on June 2 that his country was close to rejecting the US proposal to end a decades-long nuclear dispute, saying it did not serve Tehran's interests or soften Washington's position on uranium enrichment. This could mean continued sanctions on Iran, which would limit supplies, Reuters reported.

Meanwhile, the American Petroleum Institute's report on US oil inventories is expected later today, before the official data from the US Energy Information Administration is released on June 4.