Oman Signals Calm, Oil Prices Also Fall
Oil prices weakened again on Monday (February 9), as the market began to shed the Middle East risk premium after the US and Iran agreed to resume indirect talks on Tehran's nuclear program. In the European session, this pressure was clearly visible across both major benchmarks.
At 09:27 GMT, Brent fell 24 cents (-0.3%) to $67.62 per barrel, while WTI fell 34 cents (-0.3%) to $63.12. These figures confirm that today's sentiment is more toward "tensions easing" than "supply disruptions."
The key story lies in Oman: the outcome of Friday's talks was described as "positive" by both sides, slightly easing market fears that negotiations would fail and lead to open conflict. Although the US is still increasing its military presence in the region, investors see the diplomatic path as still alive—and that's enough to put pressure on short-term prices.
But the market remains aware that the risks haven't disappeared. Around a fifth of global oil consumption passes through the Strait of Hormuz—if this route is disrupted, the impact could be felt directly on prices. Moreover, the Iranian Foreign Minister has warned of attacking US bases in the Middle East if Iran is attacked, so the sparks of conflict remain, even though "news of further negotiations" have been suppressed.
Beyond geopolitics, the Russian factor is also making traders nervous. Europe is pushing for measures to limit Russian oil revenues, and there are signals that Indian refineries are starting to avoid purchasing Russian cargoes for April delivery—which, if continued, could change the direction of global supply flows. Last week, Brent and WTI also fell more than 2% (the first correction in seven weeks), so the "go down first" sentiment remains strong at the start of this week.
Source: Newsmaker.id
