Oil prices fell as traders expressed concerns about the potential impact of the US-led trade war on energy demand, while also keeping an eye on ongoing talks between Washington and Tehran over Iran’s nuclear program.
Brent crude dropped by as much as 2 per cent to below $67 a barrel, while West Texas Intermediate hovered near $64, according to Bloomberg.
Upcoming data, including a revised forecast from the International Monetary Fund, may offer further signs of a global slowdown driven by President Donald Trump’s trade policies.
Iran’s foreign minister stated that the country had reached a “better understanding” with the US on several key principles following over three hours of nuclear talks on Saturday.
The negotiations are set to resume Wednesday in Oman and could influence the outlook for Iranian crude exports.
“Everything is flashing bearishness — from macro, to fundamentals, and to geopolitics ,” said Gao Jian, an analyst at Qisheng Futures Co. “Worries over an economic recession remain the core risk.”
Oil has tumbled sharply this month, hitting a four-year low at one point, as investor fears mount that escalating tariffs between the US and major trade partners like China will weaken crude demand.
The decline has been further fueled by OPEC+’s decision to ramp up production more quickly than anticipated, reigniting concerns about an oversupply.
“Nuclear talks between the US and Iran appear to be progressing relatively well, helping to ease a fairly big supply risk hanging over the oil market,” said Warren Patterson, Singapore-based head of commodities strategy at ING Groep NV. “It’s early days still, but the fact that further talks are planned suggests we are at least heading in the right direction.”
Trading volumes may be lighter than usual in Monday’s session due to Easter holidays in some countries.
Meanwhile, a contango structure — a bearish market signal where longer-dated futures trade above near-term contracts — has reemerged in parts of the oil futures curve.
