Oil Prices Stabilize Amid Anticipation of Indicators on Tehran-Washington Talks

SadaNews - Oil prices stabilized at the beginning of the week with little change, as traders monitored geopolitical risks ahead of the resumption of talks between the United States and Iran on Tuesday.

Brent crude was trading close to $68 a barrel, following its first consecutive weekly decline this year, while West Texas Intermediate was around $63.

U.S. President Donald Trump stated on Friday that regime change would be the best outcome for Iran, increasing pressure ahead of the scheduled negotiations in Geneva.

Oil has risen by about 10% this year as tensions with Iran escalated, and the possibility of supply disruptions in a region that pumps about a third of the world's crude overshadowed concerns about surplus accumulation.

Futures contracts have trimmed some of those gains with the diminishing risk of an imminent strike, and after the International Energy Agency reduced its demand growth forecasts for this year.

Robert Rennie, Head of Commodity and Carbon Research at Westpac Banking Corp, said: "While political tensions provide short-term support, the supply picture is likely to return strongly as a driver of crude prices in the coming months."

He added: "We still expect Brent to eventually slide into the low $60s as we move through the first half of this year and as upward pressure on prices begins to build due to increased global production."

Anticipation for Results from Ukraine War Resolution Talks

At the same time, U.S.-led talks aimed at ending the war in Ukraine are also set to begin in Geneva on Tuesday, although the prospects for a quick resolution to the nearly four-year conflict and the return of Russian barrels seem weak.

Drone strikes on the Black Sea coast over the weekend caused damage to infrastructure at the Taman port and fuel tanks.

Separately, some members of the OPEC+ alliance indicated they see room for resuming production increases in April, considering that concerns about the surplus are exaggerated, although the group has not committed to any action before its meeting on March 1.

The final decision may depend on whether Trump will launch military strikes against Iran or reach a nuclear agreement with the OPEC member state, according to a delegate.

In the latest transactions, there was little change in Brent crude contracts for April settlement at $67.74 a barrel as of 1:52 PM Singapore time. West Texas Intermediate contracts for March delivery also stabilized at $62.88 a barrel.