Oil prices fall on Monday

Oil prices fell about 1 per cent on Monday as immediate fears of a wider Middle East conflict eased after the United States and Iran agreed to continue talks on Tehran’s nuclear programme, calming concerns over potential supply disruptions.

Brent crude slipped 67 cents to $67.38 a barrel by early trading, while US West Texas Intermediate (WTI) fell 61 cents to $62.94. The losses followed a decline of more than 2 per cent last week, the first weekly drop in seven weeks, as diplomatic signals reduced risk premiums.

Investor anxiety had centred on the risk of supply interruptions in the Middle East, where around one-fifth of global oil consumption passes through the Strait of Hormuz. While both sides described recent US-Iran discussions in Oman as constructive, tensions remain elevated after Iran warned it would strike US bases in the region if attacked, underscoring the fragile outlook.

Markets are also weighing tighter pressure on Russian oil exports. The European Commission has proposed a broad ban on services supporting Russia’s seaborne crude shipments, while Indian refiners have scaled back purchases for April delivery, potentially reshaping global trade flows. Despite the easing of immediate geopolitical fears, analysts expect oil prices to remain volatile amid conflicting signals on diplomacy, sanctions, and supply risks.

Attribution: Reuters