Oil Stabilizes Near $67 as Talks Progress Between Washington and Tehran

SadaNews - Oil maintained its decline following positive talks between the United States and Iran regarding the nuclear program of the OPEC member state, which reduced the risk premium in crude prices.

Brent crude, the global benchmark, stabilized above $67 per barrel with little change after ending Tuesday's session down about 2%, while West Texas Intermediate crude was traded at nearly $62.

Tehran stated that it reached a "general agreement" with Washington on the terms of a potential deal, while a U.S. official reported that Iranian negotiators are expected to return to Geneva with a new proposal within two weeks.

Geopolitical Tensions vs. Surplus Supply Concerns

Crude prices had risen this year as geopolitical concerns, including tensions over Iran, outweighed warnings that the global market faces a surplus that might pressure prices.

Tensions with Iran, which saw a wave of anti-government protests in January, raised traders' fears of potential impacts on oil production or vital supply routes like the Strait of Hormuz if military confrontations erupted.

U.S. Vice President J.D. Vance said Tuesday that talks with Iran were going well, but the country had not yet acknowledged the red lines set by President Donald Trump.

The apparent diplomatic progress comes amid increasing military movements. Iran announced on Tuesday that it would close part of the Strait of Hormuz, a choke point for energy exports from the largest oil-producing region in the world, for several hours due to military maneuvers. The United States also sent a second aircraft carrier to the region.

Focus on the Results of Russia-Ukraine Negotiations

Elsewhere, investors were monitoring the U.S.-backed negotiations between Ukraine and Russia, which are also taking place in Geneva.

The discussions are set to continue on Wednesday, according to a senior Ukrainian negotiator. Any resolution to Moscow's war on its neighbor could lead to the easing of sanctions, potentially boosting oil flows to global markets.

Trading volumes during Asian hours may be lower than usual on Wednesday, with the Lunar New Year holiday in several countries. This includes the trading hub in Singapore and China, the world's largest oil importer.

In the latest transactions, April Brent crude futures were stable at $67.58 per barrel at 1:25 PM Singapore time. Meanwhile, there was little change in West Texas Intermediate crude prices, which were traded at $62.45 per barrel.