Oil Prices Decline, Brent Hovers at $67 Per Barrel
Oil prices declined on Monday, driven by signals that regional tensions may be easing after announcements that negotiations between Washington and Tehran over Iran’s nuclear program will continue.
Brent crude traded at $67.09 per barrel, down 0.8% from the previous close of $67.66. US benchmark West Texas Intermediate (WTI) decreased 0.8% to $62.76 per barrel, compared with $63.31 in the previous session.
US President Donald Trump described the indirect talks held between Iran and the US in Muscat, the capital of Oman, as “very good,” saying Tehran had strongly demonstrated its willingness to reach a new agreement.
Expressing satisfaction with the initial round of talks in Muscat, Trump said: “Today we had very, very good talks with Russia and Ukraine, and likewise, we had very good talks with Iran. It looks like Iran wants to make a deal, and they want it very much.”
Recalling that a large naval force had been dispatched to the region in response to Iran, Trump added, “It will be there soon. We’ll see how this turns out.”
Iranian President Masoud Pezeshkian also said the talks with the US marked a step forward.
These developments weakened perceptions of regional tension surrounding Iran, one of the world’s largest oil producers located on the Strait of Hormuz, a critical route for global crude supplies, thereby exerting downward pressure on oil prices.
Meanwhile, Trump signed an executive order allowing the imposition of additional tariffs on goods imported from countries that directly or indirectly purchase goods or services from Iran.
Under the order, the US may apply an additional 25% tariff on products imported from countries that source goods or services from Iran, either directly or indirectly.
Separately, Federal Reserve (Fed) Vice Chair Philip Jefferson said he was “cautiously optimistic” about the outlook for the US economy, noting that strong productivity growth could help bring inflation back to the Fed’s target.
San Francisco Fed President Mary Daly also said she believed one or two additional interest rate cuts might be needed to counter weakness in the labour market.
Amid these developments, the yield on the US 10-year Treasury rose by 2 basis points to 4.23%, while the dollar index remained flat at 97.6. Expectations that the Fed will continue cutting interest rates helped limit the decline in prices. CBN Slowdown Naira Appreciation, Mops Up U.S. Dollar
