In recent weeks, hedge funds abandoned the oil complex as they worried that the resumption of Iranian nuclear talks would bring a flood of oil to the marketplace. Yet, they boosted their net long position to the highest level in nearly 3 years last week.
Most OPEC+ producers view it as their right to drive up prices to get that money back, and with the U.S. shale sector being held back, they’ll probably make that back and then some.
It doesn’t help that there’s not a lot of new news. There were concerns about a drop in Chinese imports and also news about the resumption of the Iranian nuclear talks, but it still looks like a longshot when it comes to lifting sanctions. 
In the past when oil processing rose, rig counts would increase rapidly, raising U.S. production; that isn’t happening this time. Banks are turning their back on U.S. energy, giving rise to a new era of OPEC+ dominance.
Not only did a fire break out and sink the 207-meter Kharg, Iran’s largest warship, a fire continues to rage at one of its largest state-owned refinery and chemical company, the Tondgooyan Petrochemical Co.
Global demand is rising and the world is more than likely headed towards an oil supply squeeze. Demand is recovering faster than supply: U.S. rig counts rose by only 3 last week and crude oil inventories are falling. 
Oil futures are stagnating despite a very friendly American Petroleum Institute (API) supply report. The market is still concerned that Iranian oil will flood the market.
Oil prices are being boosted by increasing demand and demand expectations, along with the fact that an Iran nuclear deal is becoming more difficult to reach, as Secretary of State Antony Blinken says that it’s unlikely that Iran will comply.
Oil prices are roaring back as it seems the Biden administration is having second thoughts about quickly lifting sanctions on Iran, expecting huge demand on the global reopening trade.
The oil market was up and then down because of off-again, on-again Iranian and Russian sanctions. Oil prices, which were partly weak due to the crypto craze, had a meltdown yesterday.