Oil prices deepened their losses by about 2% during trading on Tuesday, with US crude falling below $90 a barrel, while awaiting talks between Iran and the United States on the nuclear deal.
Investors are waiting for the resumption of indirect talks between the United States and Iran that could revive the nuclear deal, which could lead to the lifting of sanctions imposed on Iranian oil sales and an increase in global supplies.
On Monday, oil prices ended their trading with a decline of about 1%, amid profit-taking operations.
Oil Prices Today
West Texas Intermediate crude futures prices – for March delivery – decreased by 1.7%, recording $89.80 a barrel.
Brent crude futures prices – for delivery in April 2022 – also fell by 1.8%, recording $91.03 a barrel.
Oil prices touched a 7-year high recently, buoyed by strong global demand, ongoing tensions in Eastern Europe and possible supply disruptions due to cold weather conditions in the United States.
Talks on reviving the 2015 Iran nuclear deal in Vienna are set to resume on Tuesday after a 10-day hiatus.
The United States has restored some sanctions waivers, while Iran is demanding a complete lifting of sanctions and a U.S. guarantee that no further punitive measures will be taken.
“Crude oil futures fell, as the specter of a strike on Iranian oil weighed on sentiment,” ANZ Research analysts said in a note on Tuesday.
They added that negotiators indicated “progress” in reaching an agreement that would “return Iranian oil to global markets.”
They explained that despite this, there are still bullish signs of oil, noting that Saudi Arabia has raised oil prices and the unexpected closure of an American refinery.
Analyst Edward Moya said that while optimism about talks between the US and Iran has prompted some profit-taking, weak oil prices are likely to be short-lived, as the oil market remains tightly supplied.
He added, “With the demand for crude expected to improve steadily during the rest of the year, the oil market is fully driven by the supply side and geopolitical risks.”
Saudi Aramco said on Saturday it raised the prices of all grades of crude it sells to Asia in March compared to February in line with market expectations, reflecting strong demand in Asia and stronger margins for gasoil and jet fuel.
In the United States, Texas refineries went out of production on Friday due to a citywide blackout, as freezing temperatures from a cold Arctic front swept the Gulf Coast, although some refineries are recovering, or have since returned to operations. Almost natural.
US oil stocks
A preliminary Reuters poll showed on Tuesday that stocks of crude oil and gasoline in the United States likely rose last week, while distillate stocks were seen declining.
Crude inventories saw an increase of about 700,000 barrels in the week ending February 4th.