Oil Drops… But There's One Thing Keeping the Market Unsettled
Oil prices fell again as tensions in the Middle East began to ease. As the likelihood of supply disruptions was deemed slimmer, the market immediately abandoned the risk premium that had been boosting prices in recent times.
Brent fell to near $67 per barrel after dropping nearly 4% last week, while WTI held around $63. This decline came after Iran and the US held talks in Oman on Friday to defuse the conflict over Iran's nuclear program. Tehran called the meeting a "step forward," and Donald Trump said there would be a follow-up meeting early this week.
However, the overall story remains mixed. Throughout early 2026, oil prices actually rose despite market concerns about a supply glut. Geopolitical factors and several supply disruptions—including from Kazakhstan—were holding prices back. But signs of progress in the US-Iran dialogue last week led the market to assess the risk of imminent military action as less, leading to price weakness.
Market participants are also focusing on supply flows to India. Trump said India had agreed to halt oil imports from Russia as part of a trade deal, but New Delhi has not directly confirmed this and has insisted energy security remains its top priority. In morning trading in Asia, Brent crude fell about 1% to $67.35 per barrel, while WTI fell about 1% to $62.92. (asd)
Source: Newsmaker.id
