Oil falls on signs of progress in U.S.-Iran talks amid more market stress
Oil prices fell 1.5% on Monday on signs of progress in talks between the U.S. and Iran while investors remained concerned about economic headwinds from tariffs which could curb demand for fuel.
Brent crude futures slipped $1.15, or 1.7%, to $66.81 a barrel by 0830 GMT after closing up 3.2% on Thursday. U.S. West Texas Intermediate crude was at $63.58 a barrel, down $1.10, or 1.7%, after settling up 3.54% in the previous session. Thursday was the last settlement day last week because of the Good Friday holiday.
"The U.S.-Iran talks seem relatively positive, which allows for people to start thinking about the possibility of a solution," said Harry Tchilinguirian, group head of research at Onyx Capital Group. "The immediate implication would be that Iranian crude would not be off the market."
Markets also have lower liquidity due to the Easter holiday, which can exacerbate price moves, he added.
In the talks, the U.S. and Iran agreed to begin drawing up a framework for a potential nuclear deal, Iran’s foreign minister said, after discussions that a U.S. official described as yielding "very good progress."
The progress follows further sanctions by the U.S. last week against a Chinese independent oil refinery that it alleges processed Iranian crude, ramping up pressure on Tehran.
Markets also came under stress on Monday, after U.S. President Donald Trump last week made criticisms about the Federal Reserve. Gold prices rose to another record, with jitters rippling into energy markets due to concerns about demand, according to analysts.
Source : Reuters
