Brent Drops On Trade Woes, Iran Talks In Focus
Oil prices edged lower as concerns over the US-led trade war’s impact on global energy demand re-emerged, while investors also tracked ongoing nuclear talks between Washington and Tehran that could influence Iranian crude supply.
Brent crude, the global benchmark, slipped more than 1% to trade near US$67 a barrel, halting a two-day rebound, while West Texas Intermediate (WTI) was last seen below US$64. Trading volumes were expected to be lighter than usual due to Easter holidays being observed in several countries.
Iran’s foreign minister revealed that his nation has a “better understanding” with the United States on a number of principles following over three hours of discussion on Saturday regarding Tehran’s nuclear programme. These talks are scheduled to resume on Wednesday in Oman, and could carry significant implications for the future of Iranian oil exports.
Data anticipated later this week may shed further light on how President Donald Trump’s aggressive trade measures are affecting the US economy. The standoff with major trading partners, particularly China, continues to stir concerns that global oil demand will weaken.
Oil markets have been under pressure throughout the month, with prices sliding to their lowest in four years. Investors have grown increasingly wary that escalating tariffs and retaliatory levies could drag down crude consumption. The decline in prices has also been fuelled by Opec+’s decision to ramp up production at a faster-than-expected pace, reviving fears of a supply glut.
In a separate geopolitical development, Ukrainian President Volodymyr Zelenskiy accused Russian forces of breaching an Easter Sunday truce announced by Russian President Vladimir Putin, adding a layer of uncertainty to the broader risk environment for commodities.
Bloomberg
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