Oil prices fell during Tuesday's Asian trade, extending losses for a third consecutive session as investors assessed the prospect of easing tensions between the United States and Iran, while a firmer U.S. dollar added further downward pressure on the market.
By 3:15 pm AEDT (4:15 am GMT), Brent crude futures declined 20 cents or 0.3% to $66.10 per barrel, while U.S. West Texas Intermediate crude slipped 17 cents or 0.2% to $61.99 per barrel.
Prices had already retreated sharply in the previous session, with oil falling more than 4% on Monday after U.S. President Donald Trump said Iran was “seriously talking” with Washington, signalling a potential de-escalation of tensions involving the OPEC member.
Iran and the United States are expected to resume nuclear talks on Friday in Turkey, according to officials from both sides, while Trump warned that with large U.S. warships heading towards Iran, adverse outcomes could follow if an agreement was not reached.
ANZ analysts noted: "Crude oil felt the impact of investors retreating from the sector amid the heavy selling in the precious and base metal markets. This was exacerbated by a stronger USD, which weighed on investor appetite.
On the trade front, Trump unveiled a deal with India that reduces U.S. tariffs on Indian goods to 18% from 50% in exchange for India halting purchases of Russian oil and lowering trade barriers.
The agreement, announced following a call with Indian Prime Minister Narendra Modi, also included India’s commitment to increase oil purchases from the United States and potentially Venezuela.
