Oil Prices Rise 1% Ahead US, Iran Nuclear Talks

By Adedapo Adesanya

Oil prices moved up on Monday as investors weighed the implications of the forthcoming US-Iran talks aimed at de-escalating tensions against a backdrop of expected supply increases by the Organisation of the Petroleum Exporting Countries and allies (OPEC+).

Brent crude futures appreciated by 90 cents or 1.33 per cent to trade at $68.65 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 86 cents or 1.37 per cent to close at $63.75 a barrel.

Fears of supply disruption from the US-Iran tensions have helped keep oil prices stable. The two countries are due to hold a second round of talks in Geneva, Switzerland, on Tuesday over Iran’s nuclear programme.

Iran has repeatedly threatened to close the Strait of Hormuz in retaliation against any attack, which would choke a fifth of global oil flows and send crude prices sharply higher.

Comments from US President Donald Trump that it could make a deal with Iran over the next month with US Secretary of State Marco Rubio emphasizing that the Trump administration prefers diplomacy with Iran, though military options remain implicitly on the table.

Iran signaled willingness to dilute 60 per cent enriched uranium but insists sanctions relief must be part of any agreement.

This comes ahead of new US-Iran talks in Geneva on February 17. The US delegation will include envoys Mr Steve Witkoff and Mr Jared Kushner, with representatives from Oman acting as mediators. Oman hosted indirect talks between Iran and the US earlier in February.

Ahead of the meeting, Iran’s foreign minister met with Mr Rafael Grossi, the head of the International Atomic Energy Agency (IAEA), the UN nuclear watchdog, on Monday.

Market analysts have warned that increased Iranian tension could drive Brent to $80 a barrel, while fading tension would drop it back to $60 a barrel.

OPEC+ is dampening oil prices as it appears the alliance is leaning toward a decision at their March 1 meeting to resume output increases from April after a three-month halt.

Oil prices also were supported by China’s continued strong crude imports and by some disruptions in oil exports.

China’s imports of Russian oil are set to climb for a third straight month in February, hitting a new record, after India slashed purchases following US pressure.