Oil remained steady as traders focused on talks between the US and Iran. Brent traded near to $68 per barrel, and WTI traded near $63 per barrel
Bloomberg – Oil remained steady at the start of the week as traders are closely watching the geopolitical risks before the diplomatic talks between the US and Iran are expected to resume on Tuesday.
Brent traded at approximately $68 per barrel after its first back-to-back weekly drop this year. On the other hand, West Texas Intermediate traded near $63 per barrel.
On Friday, US President Donald Trump said that a change in the administration would bring the best results for Iran, intensifying the pressure before negotiations in Geneva.
This year, oil prices have increased by 10% due to growing tensions between Iran and the potential for disruptions in the Middle East, which has the highest oil output. However, due to signs that an attack was not imminent and because the International Energy Agency made an adjustment to its GDP forecast, oil futures have pared some of those gains.
“Although near-term support comes from geopolitics, we expect supply to provide the main driver of crude oil price direction over the next number of months,” said Robert Rennie. “We expect Brent crude prices will eventually drop down to approximately US$60 as we approach H1 and as increased global production weighs on prices.
Talks led by the United States to end the conflict in Ukraine will begin in Geneva on Tuesday; however, it is unlikely that the conflict can be solved quickly or that Russian oil will be made available again. Over the weekend, drone attacks in the Black Sea damaged infrastructure at the Taman seaport and tanks containing fuel.
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Meanwhile, some OPEC+ countries stated that they believe greater production can be restored in April and that worries about an impending glut are overstated; however, until the March 1 meeting, the Organisation has not committed to moving ahead.
The outcome may ultimately depend on whether the Trump administration attacks Iran or signs a nuclear deal with Iran, according to one OPEC+ country delegate.
