Oil Prices Fluctuate Ahead of US-Iran Nuclear Talks
Oil markets experienced volatile movements today, Monday, as prices fell ahead of anticipated talks between the United States and Iran, amid ongoing concerns about tensions that could impact global oil flow.
Brent crude futures recorded $67.72 per barrel, while West Texas Intermediate (WTI) reached $62.86, with geopolitical risks continuing to provide support.
It is worth noting that there will be no settlement for West Texas Intermediate today due to the market holiday.
Despite a slight decline in prices, markets remained stable as they awaited the results of the nuclear talks, through which Iran aims for an agreement that yields economic benefits for both sides, including investments in energy, mining, and aircraft purchases.
Tony Sycamore, a market analyst at "IG", said:
"With both sides holding firm to their red lines, the chances of reaching an agreement are low, and this calm is likely just the calm before the storm."
On the military front, the United States has sent a second aircraft carrier to the region in preparation for the possibility of military confrontation if talks fail, while the Iranian Revolutionary Guard warned of retaliation against any strikes targeting Iranian territory or US bases.
Meanwhile, the "OPEC+" group of oil producers is considering resuming production increases starting in April after a three-month halt, to meet expected demand during the summer.
Sycamore stated: "The market has responded well to those reports, and without the support of geopolitical risks, West Texas Intermediate prices would be below $60 this morning."
Forecasts indicate that activities in global financial markets will be weak today, with markets in China, South Korea, and Taiwan closed due to public holidays.
Oil prices remain under the influence of geopolitical tensions, awaiting the results of the second round of talks scheduled for tomorrow in Geneva, amid a climate of cautious anticipation among global investors.
