(RTTNews) – Crude oil fell on Monday, extending losses from the previous session as signs of the US-Iran conflict easing eased supply-production concerns in the Middle East, reducing the geopolitical risk premium.
WTI crude oil for March delivery was last seen trading at $61.93 per barrel, down $3.28 (or 5.03%).
Last month, US President Donald Trump sent US warships to the Middle East and gave Iran an ultimatum, asking it to negotiate with the US on its nuclear plans or face serious attacks. Trump said the fleet is prepared to accomplish its mission with violence if necessary.
However, refusing to bow under Trump’s coercive tactics, Iran warned of a serious retaliatory strike. Iran even asked its neighbors not to facilitate US forces in their territories, otherwise they would be considered Iran’s adversaries.
Tensions escalated into a war-like situation in the Middle East, raising concerns of supply-production disruptions and sending oil prices soaring.
Iran’s Supreme Leader Ayatollah Ali Khamenei warned that an attack on Iran could trigger a “regional war”.
Yesterday Trump said that Iran is engaged in serious talks with America.
Today, Iranian media reported that Iranian President Massoud Pezeshkian has ordered the start of negotiations with the US, while the framework for negotiations is being finalized through regional mediators.
Oil prices fell today as tensions in the Middle East eased to some extent.
The strengthening of the US dollar also accelerated the fall in oil prices.
The US Dollar Index was last seen trading at 97.63, up 0.64 (or 0.66%).
Crude oil exports from Venezuela rose to 800,000 bpd in January from 498,000 bpd in December, putting pressure on oil prices, Reuters reported.
A new round of talks on a US-drafted peace plan to end the Russia-Ukraine war is set to begin this week.
A previous meeting between Russia and Ukraine with US mediators in Abu Dhabi last month ended without any significant breakthrough.
Now, both Russia and Ukraine have announced that trilateral talks are likely to resume in Abu Dhabi on February 4 and 5.
However, Russia had said till yesterday that it was halting its attacks on Ukraine at Trump’s request. However, Ukraine reported that two separate drone strikes hit Ukrainian civilian sites in the southeastern Dnipropetrovsk region.
Russian officials reported that two separate Ukrainian drones attacked its Belgorod border region and the Bryansk region.
OPEC announced today that OPEC members – Iran and the United Arab Emirates as well as non-OPEC producers Kazakhstan and Oman – have submitted their updated plan to cut excess output between January and June to offset their previous surplus production.
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