Brent Edges Lower as Focus Shifts to Key U.S.-Iran Talks

PUKMEDIA

Oil prices.

Brent oil prices drifted lower in Asian trading on Tuesday as investors assessed supply risks after Iran conducted naval drills near the Strait of Hormuz ahead of nuclear talks with the United States later in the day.

According to Reuters report, Brent crude futures fell 0.47%, or 32 cents, to $68.33 a barrel by 0430 GMT, following a 1.33% gain on Monday.

U.S. West Texas Intermediate (WTI) crude was at $63.51 a barrel, up 62 cents, or 0.99%. However, the increase reflected Monday’s price action, as the contract did not settle that day due to the US Presidents Day holiday.

Several markets remained closed on Tuesday for Lunar New Year holidays, including mainland China, Hong Kong, Taiwan, South Korea and Singapore.

U.S. President Donald Trump said on Monday that he would be involved “indirectly” in the talks in Geneva, adding that he believed Tehran wanted to reach a deal. Over the weekend, Trump said regime change in Iran “would be the best thing that could happen.”

Iran began military drills on Monday in the Strait of Hormuz, a vital international shipping lane and key oil export route for Gulf Arab states, which have called for diplomacy to defuse tensions.

Iran, along with fellow OPEC members Saudi Arabia, the United Arab Emirates, Kuwait and Iraq, exports most of its crude via the strait, primarily to Asian markets.

Meanwhile, Citi said that if disruptions to Russian supply keep Brent in a $65 to $70 per barrel range in the coming months, OPEC+ is likely to respond by increasing output from its spare capacity.



PUKMEDIA