Oil Held, Market Monitors US-Iran Negotiations
Oil prices held steady after posting their biggest daily drop in three weeks. The market began to calm down as planned talks between Iran and the United States on Friday afternoon were seen as easing the immediate risk of military conflict and potential supply disruptions.
In the Asian session, West Texas Intermediate (WTI) traded around $63 per barrel after plunging 2.8% on Thursday. Meanwhile, Brent remained below $68.
Pressure intensified after US President Donald Trump said Iran was negotiating, prompting the market to reduce the geopolitical risk premium. However, prices briefly rebounded after Saudi Arabia cut its selling prices to Asian buyers by less than expected, a signal some market participants interpreted as indicating Riyadh remained confident in demand.
On a weekly basis, oil is on track for its first decline since mid-December, as the market shed some of the risk premium that had built up during heightened tensions in the Middle East—a region that supplies about a third of the world's crude oil.
Despite the easing of conflict risks, the market has yet to fully calm down. Differing positions on the parameters of the US-Iran negotiations make the chances of a major agreement unclear. This means these talks still have the potential to cast a shadow over the market—especially as the issue of physical oversupply begins to loom large.
At 7:23 a.m. Singapore time, March WTI fell 0.5% to $62.99 per barrel. Meanwhile, April Brent closed 2.7% lower at $67.55 per barrel on Thursday. (alg)
Source: Newsmaker.id
