Oil Corrects in Asian Session: "War Premium" Evaporates, Dollar Strengthens
Crude oil prices weakened sharply in Asian trading on Monday, February 2, 2026, after a previous rally was suppressed by profit-taking and easing concerns about supply disruptions. Brent fell around $2.81 to $66.51/barrel, while WTI weakened $2.70 to $62.51/barrel (around -4%).
Selling pressure emerged after Donald Trump stated that Iran was "serious" about talking to the United States—leading the market to assess the chances of de-escalation. Reuters also noted that additional signals, including Iran's decision not to hold naval exercises in the Strait of Hormuz, helped reduce the risk premium previously attached to oil prices. At the same time, a strengthening dollar and profit-taking accelerated the correction.
On the supply side, OPEC+ decided to maintain output (holding back planned production increases) for March 2026. However, this decision was not enough to stem today's sell-off, as market focus shifted from "conflict risk" to "normalization of the risk premium," while several analysts also assessed the potential for weaker second-quarter demand.
Global risk-off sentiment added to the pressure. At the start of the week, Asian markets weakened amid commodity volatility (metals were volatile), and the market became sensitive again to macro headlines—leading oil to a 3% drop at the opening.
Looking ahead, the oil market will remain headline-driven: developments in US-Iran talks, dollar movements, and further signals from OPEC+ regarding policy after March could potentially trigger further volatility.
Source: Newsmaker.id
