Global oil prices remained steady on Monday as markets closely watch upcoming talks between United States and Iran. While concerns over potential disruptions in oil supply due to US-Iran tensions kept prices stable, OPEC+ is considering increasing production from April. The day saw Brent crude futures slightly down at $67. 72 per barrel, while US WTI crude stood at $62. 86.
The market’s cautious stance comes ahead of crucial negotiations between Washington and Tehran in Geneva on Tuesday. These talks aim to resolve their long-running dispute over Iran’s nuclear program. Both benchmarks had declined last week after US President Donald Trump suggested a possible deal with Iran within a month.
An Iranian diplomat revealed that Iran seeks a nuclear agreement offering mutual economic benefits, including investments in energy and mining sectors, along with aircraft purchases. However, market analyst Tony Sycamore said, “With both sides expected to hold firm on their core red lines, expectations are low that a deal can be reached and this is likely to be the calm before the storm,” as quoted by Reuters.
Military tensions have escalated, with the US deploying a second aircraft carrier to the region.
However, Iran’s Revolutionary Guards have threatened to retaliate against US military bases if their territory is attacked.
Meanwhile, OPEC+ is considering resuming oil production increases after a three-month pause to meet summer demand. “The market reacted reasonably well to those reports,” Sycamore commented, adding “If that geopolitical premium or support wasn’t there, crude oil would likely be trading sub $60 this morning.”
Trading activity is expected to be quiet on Monday with several Asian markets, including China, South Korea, and Taiwan, closed for holidays.
