US-Iran Oil Talks: Crude Prices Drift Ahead of Geneva Meeting
Oil prices moved sideways on Monday. Traders waited for the next round of US-Iran oil talks in Geneva. As a result, concerns about supply disruptions kept prices from falling sharply. Brent crude slipped slightly. It traded at $67.72 per barrel early Monday. However, it closed higher on Friday. US West Texas Intermediate also dipped. It traded at $62.86 per barrel. There was no settlement because of a US holiday.
Last week, both benchmarks posted small losses. Brent fell about 0.5 percent. Meanwhile, WTI dropped around 1 percent.
Market Reacts To Diplomacy Signals
Prices fell after comments from Donald Trump. He said the US could reach a deal with Iran within a month. Therefore, traders priced in the possibility of improved relations.
The two countries restarted negotiations earlier this month. They aim to resolve their long running nuclear dispute. Another round of talks will take place in Geneva on Tuesday.
An Iranian diplomat said both sides want economic gains. For example, energy and mining investments are under discussion. Aircraft purchases may also form part of a future deal.
Tensions Still Shape The Outlook
Despite talks, expectations remain low. Analysts say both sides hold firm on key issues. As a result, markets fear tensions could rise again. The US has sent another aircraft carrier to the region. Officials say they are preparing for possible military action if talks fail. In response, Iran’s Revolutionary Guards warned they could strike US bases. These risks continue to support prices. Without this geopolitical tension, analysts say crude could fall further.
OPEC+ Output Plans Add Pressure
At the same time, OPEC+ may raise output. The group includes the Organization of the Petroleum Exporting Countries and its allies. They are considering supply increases from April. The move would follow a three-month pause. It also aims to meet peak summer demand. Therefore, extra supply could limit price gains. Global trading activity may stay quiet on Monday. Markets in China, South Korea, and Taiwan are closed for holidays. As a result, oil prices may remain range bound until new developments emerge.
