Oil slipped over 2% as US-Iran talks and Easter lull heightened caution
The shift in sentiment followed reports that Washington and Tehran had agreed to begin drafting a framework for a possible nuclear agreement—raising the possibility of softer US restrictions on Iranian energy flows.
Oil prices slipped over 2% on Monday, retreating from much of the previous week’s gains as traders weighed signs of diplomatic progress between the US and Iran alongside muted trading activity over the Easter weekend.
Brent crude futures fell $1.70, or 2.5%, to settle at $66.26 per barrel.
WTI declined $1.60, or 2.5%, to $63.08 per barrel.
The shift in sentiment followed reports that Washington and Tehran had agreed to begin drafting a framework for a possible nuclear agreement—raising the possibility of softer US restrictions on Iranian energy flows. Following the development, investors considered that Iranian crude could return to global markets earlier than expected.
At the same time, volume movements were thinned by the extended Easter weekend in Western markets. A trading pause on Good Friday made Thursday the final settlement day before markets reopened on Monday, contributing to softer demand.
Written by: Derek Yong