Oil Prices Rise 0.2% Amid Stalled Iran Talks

International oil prices experienced a slight increase on Monday, with the European benchmark, Brent crude, rising by 13 cents, or 0.2%, to settle at $65.54 per barrel. Meanwhile, West Texas Intermediate (WTI) crude climbed by 20 cents, or 0.32%, to close at $62.69 per barrel. Both benchmarks had recorded gains of over 1% in the previous week.

The upward movement in oil prices was driven by concerns over the stalled U.S.-Iran nuclear talks. Iranian state media reported that if Washington insists on demanding Tehran to halt uranium enrichment activities, the nuclear talks between Iran and the U.S. would be fruitless. This statement weakened the prospects of a deal, which, if reached, would pave the way for lifting U.S. sanctions and potentially increase Iran's oil exports by 300,000 to 400,000 barrels per day. However, the potential increase in supply now seems unlikely.

Despite the downward pressure from Moody's credit rating downgrade, which raised doubts about the economic health of the world's largest oil consumer, oil prices managed to rise. U.S. Treasury Secretary Scott Beisen's remarks about President Trump's threat to impose tariffs on trading partners who do not negotiate in good faith further added to the market's volatility.

John Kilduff, a partner at Again Capital, noted that in the foreseeable future, oil prices could remain volatile as investors focus on tariff policies, U.S.-Iran talks, and the progress of negotiations to end the conflict in Ukraine. Russian President Vladimir Putin, following a conversation with Trump, stated that Moscow is ready to cooperate with Ukraine on a memorandum for a future peace agreement, indicating that efforts to end the conflict are on the right track. Kilduff pointed out that the resolution of the conflict could boost Russian oil exports, potentially leading to a significant drop in oil prices.

The market's attention is also focused on the ongoing negotiations to end the conflict in Ukraine and the potential impact on global oil supply. The resolution of these geopolitical tensions could lead to increased oil exports from Russia, further influencing global oil prices. The market's focus on these geopolitical developments underscores the interconnected nature of global energy markets and the potential for significant price movements in response to political and economic events.