Oil prices are falling amid anticipation of negotiations between the US and Iran and economic data from China.
Oil markets witnessed a decline in prices during Monday's trading on May 19, as investors focused on the developments of the nuclear negotiations between the United States and Iran, in addition to awaiting key economic data from China that may impact global demand for crude oil.
Data showed a decrease in Brent crude futures by 0.55% to $65.05 per barrel, while WTI crude futures dropped by 0.5% to $62.15 per barrel.
This decline follows last week's gains of over 1%, supported by a temporary trade agreement between Washington and Beijing.
Later today, China will release economic reports including industrial production, which could affect market sentiment. Analysts at ANZ Bank noted that "any negative signals in Chinese data could undermine the optimism created by the trade truce with the United States."
In a related context, attention is turning to the nuclear talks between the United States and Iran, where U.S. envoy Steve Weinberg affirmed on Sunday that any agreement must include "Iranian commitment to not enrich uranium," sparking anger in Tehran.
On the other hand, IG analyst Tony Sycamore commented, saying: "Hopes are pinned on the outcome of these talks, yet reality indicates the difficulty of Iran willingly giving up its nuclear ambitions, especially after the decline in influence of its regional proxies."
Tensions escalated between Russia and Estonia after Moscow detained a Greek oil tanker that had left an Estonian port. In the United States, the number of oil drilling rigs decreased by one last week, bringing the total count to 473, the lowest since January.
