Oil Markets Hold Steady as Traders Await Outcome of US–Iran Nuclear Negotiations
Oil prices were little changed on Monday, with investors weighing the market implications of upcoming U.S.-Iran talks aimed at de-escalating tensions against a backdrop of expected OPEC+ supply increases.
Brent crude futures edged down 18 cents, or 0.3%, to $67.52 a barrel by 0910 GMT.
U.S. West Texas Intermediate crude was at $62.72 a barrel, down 17 cents.
Activity in global financial markets is expected to be muted on Monday with China, South Korea and Taiwan closed for Lunar New Year holidays, in addition to Presidents Day in the United States.
Last week, both benchmarks posted weekly declines with Brent settling about 0.5% lower and WTI losing 1% after comments from U.S. President Donald Trump that Washington could make a deal with Tehran over the next month.
The two countries are due to hold a second round of talks in Geneva on Tuesday over Tehran’s nuclear programme and averting a new military confrontation.
Iran is pursuing a nuclear agreement with the U.S. that delivers economic benefits for both sides, with energy and mining investments and aircraft purchases up for discussion, an Iranian diplomat was reported as saying on Sunday.
The U.S. has dispatched a second aircraft carrier to the region and is preparing for the possibility of a sustained military campaign if the talks do not succeed, U.S. officials have told Reuters. Iran’s Revolutionary Guards have warned that in case of strikes on Iranian territory, they could retaliate against any U.S. military base.
“Increased Iranian tension could drive Brent to $80 a barrel. Fading tension would drop it back to $60 a barrel,” SEB analysts said in a note.
With U.S.-Iran tensions pushing up oil prices, the Organization of the Petroleum Exporting Countries and allies – together called OPEC+ – are putting a dampener on this bullishness by leaning toward a decision to resume output increases from April at their March 1 meeting following a three-month halt, Reuters reported.
Additional reporting by Mohi Narayan in New Delhi and Florence Tan in Singapore; Editing by Sonali Paul, Kevin Buckland and Andrei Khalip
This article was first reported by Reuters
