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By Bloomberg

Oil rose a second day as speculation mounted that it will take until next year for Iran to bolster crude exports after reaching a deal over its nuclear program.

Futures advanced as much as 0.9 percent in New York. Iran may boost exports by 200,000 to 400,000 barrels a day in 2016 and production will likely expand the following year, according to Goldman Sachs Group Inc. Israeli Prime Minister Benjamin Netanyahu condemned the accord as a “historic mistake.” U.S. crude inventories probably declined through July 10, a Bloomberg survey showed before an Energy Information Administration report Wednesday.

Oil’s rebound from a six-year low in March has faltered amid economic uncertainty in China and Greece and speculation a global glut will persist. A slow return of Iranian crude could mean it arrives just in time to satisfy growing demand, rather than inflating a surplus, according to Societe Generale SA.

“Iran will not be increasing production for some time,” Jonathan Barratt, the chief investment officer at Ayers Alliance Securities in Sydney, said by phone. “There is also the question of how much pressure Israel is going to put on the U.S. senate in terms of the ramifications of the deal.”

West Texas Intermediate for August delivery rose as much as 46 cents to $53.50 a barrel in electronic trading on the New York Mercantile Exchange and was at $53.31 at 2:26 p.m. Sydney time. The contract gained 84 cents to $53.04 on Tuesday. The volume of all futures traded was about 6 percent below the 100- day average. Prices are little changed this year.

Nuclear Deal

Brent for August settlement, which expires Thursday, gained as much as 30 cents, or 0.5 percent, to $58.81 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $5.40 to WTI. The more-active September contract climbed 21 cents to $58.89.

Restrictions on Iran will remain in place at least until United Nations monitors report on the country’s compliance with the deal in December, diplomats involved in the talks said Tuesday. The U.S. Congress has 60 days to review the agreement in Washington, where it will meet resistance from lawmakers who oppose making any compromises.

Iran, which had signaled it wants to boost shipments by as much as 500,000 barrels a day immediately after a deal with world powers, will probably be limited first to drawing down oil in floating storage, Goldman said in a report dated July 14.

“We remain cognizant that Iran still has a steep hill to climb with regard to compliance,” Barclays Plc analysts including Michael Cohen wrote in a report Tuesday. “This may mean delays for further Iranian crude exports.”

In the U.S., the world’s biggest oil consumer, stockpiles probably fell by 1.9 million barrels last week, according to the Bloomberg survey. Inventories expanded to 465.8 million through July 3, almost 100 million barrels above the five-year average for this time of the year.