Crude Oil Prices Tumble as U.S.-Iran Hold Talks
Oil prices tumbled sharply in the global commodity market on Monday as the U.S and Iran held talks, which partially removed the risk premium from crude markets and some profit-taking.
International benchmark Brent crude traded at $65.64 per barrel, down 5.8% from the previous close of $69.73. US benchmark West Texas Intermediate (WTI) declined 6% to $61.50 per barrel, compared with $65.46 in the prior session.
US President Donald Trump said on Sunday in an interview with Fox News that negotiations were ongoing with Iran over its nuclear program, though he offered little optimism about a final outcome.
Sharing information that the US has a “large fleet” moving toward Iran, Trump said, “It is even bigger than what we have in Venezuela.”
Trump also said India would buy oil from Venezuela instead of Iran, adding that the door remained open for China.
Prices, which rose last week on concerns over possible US military action against Iran and cold weather in North America that disrupted supply, lost gains on news flow suggesting Tehran is holding talks with Washington.
Meanwhile, eight members of the OPEC+ group, comprising the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers, reiterated their commitment to supporting stability in oil markets in line with what they described as healthy market conditions, during an online meeting held on Sunday.
The eight countries, Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, confirmed their decision to halt production increases in March due to seasonal factors, noting that the 1.65 million barrels per day of output could be gradually restored depending on market conditions.
The meeting also emphasized full compliance with voluntary production cuts and compensation for any overproduction, adding that market conditions would be monitored on a monthly basis and that the next meeting would be held on March 1, 2026.
OPEC+ keeping production steady in line with expectations continues to support downward pressure on oil prices. CBN Conducts 3 OMO Bills Auctions, Cuts Interest Rate
