Oil Weakens for 3rd Day, Market Eyes Iran & US-India Deal
Oil prices fell for a third straight day after geopolitical tensions eased, while traders awaited clarity on a potential US-India trade deal that could see India reduce its discounted oil imports from Russia.
The Brent contract fell below US$66/barrel, after the April contract plunged 4.4% on Monday amid a widespread commodity sell-off. WTI also weakened, hovering around US$62/barrel.
Sentiment improved after US President Donald Trump said talks with Iran on a new nuclear deal could begin within days, following signals from Tehran that they were ready for dialogue. This softer tone reduced the geopolitical risk premium in oil.
Meanwhile, Trump also said he would cut tariffs for India in exchange for Prime Minister Narendra Modi halting purchases of Russian oil—a claim that has not been confirmed by India. Russian oil shipments to Indian ports also reportedly fell to their lowest level in more than three years, raising the potential for an increase in unabsorbed "sanctioned" barrels in the global market.
Last month, oil rallied despite market concerns about the risk of oversupply. Prices were supported by geopolitical issues and supply disruptions, including from Kazakhstan. However, the rally stalled on Monday when commodities—especially metals—corresponded to a concerted correction, coupled with a strengthening US dollar, which also put pressure on commodity-based assets.
Price update (Asian morning session): Brent crude for April fell 0.8% to US$65.74/barrel, while WTI crude for March fell 0.8% to US$61.65/barrel.
Source: Newsmaker.id
