Crude Oil Prices Fall as Supply Risks Ease

Crude Oil Prices Fall as Supply Risks Ease

Crude oil prices fell in the global commodity market on Tuesday as investors awaited fresh indirect talks between the US and Iran, with expectations of diplomatic progress easing concerns about potential supply disruptions in the Middle East.

International benchmark Brent crude traded at $67.71 per barrel, down 0.7% from the previous close of $68.19. US benchmark West Texas Intermediate (WTI) decreased 0.7% to $63.18 per barrel, compared with $63.64 in the previous session.

US President Donald Trump said he will be involved “indirectly” in nuclear talks between the US and Iran that will be held in Geneva on Tuesday.

“I’ll be involved in those talks indirectly, and they’ll be very important,” Trump told reporters Monday en route to Washington when asked what he is expecting from the second round of the indirect nuclear negotiations. “We’ll see what can happen,” he added.

Under the announced schedule, the talks are set to begin Tuesday morning under Omani mediation and will be hosted at the Embassy of Oman in the Swiss city.

Even as officials underscored that military action remains on the table, keeping alive the risk of supply disruptions in the oil-rich Middle East, growing hopes for diplomacy have eased market fears, trimming the geopolitical premium and weighing on crude prices.

Investors are also turning their attention to a slate of US economic data due this week. Alongside growth figures, markets are watching the Personal Consumption Expenditures price index and Purchasing Managers’ Index readings, key indicators closely monitored by the Federal Reserve for signals on inflation and the path of interest rates.

Investors will also scrutinize minutes from the Federal Open Market Committee’s latest meeting, due Wednesday, for fresh clues on the Fed’s next monetary policy moves. Tech Stocks Selloffs Dominate Headlines in Global Equities Markets