Oil Falls After Iran Calls Nuclear Talks With US Constructive
Oil edged lower on signs that the US and Iran have made progress in nuclear talks, eroding a risk premium in benchmark futures prices.
West Texas Intermediate fell to trade below $63 a barrel after Iranian Foreign Minister Abbas Araghchi said that the two countries had “serious, constructive” talks and reached a general agreement on a set of principles. The development erased earlier gains after Iran said it would shut parts of the Strait of Hormuz for military drills.
Crude is up almost 10% so far this year thanks to a combination of supply disruptions, geopolitical risk and a buildup of sanctioned barrels. While futures have settled in a band between $61 and $65 for most of this month, the outcome of the flurry of diplomatic efforts in the coming days and hours could dictate the path forward for prices.
Prices:
WTI was trading at $62.71 a barrel as of 9:12 a.m. in New York.
There was no settlement on Monday because of the Presidents’ Day holiday.
Brent for April settlement was down 1% at $67.64 a barrel.
Source: Bloomberg
