Oil Prices Little Changed Ahead of US - Iran Nuclear Talks - Energy News, Top Headlines, Commentaries, Features & Events

Summary

US, Iran officials due to meet in Geneva on Tuesday
Iran says energy, mining and aircraft deals on table in US talks
OPEC+ leans toward resuming output hikes from April, sources say

LONDON, Feb 16 (Reuters) – Oil prices were little changed on Monday, with investors weighing the market implications of upcoming U.S.-Iran talks aimed at de-escalating tensions against a backdrop of expected OPEC+ supply increases.

Brent crude futures edged down 9 cents, or 0.1%, to $67.84 a barrel by 1157 GMT.

U.S. West Texas Intermediate crude was at $62.93 a barrel, down 4 cents.

Activity in global financial markets is expected to be muted on Monday with China, South Korea and Taiwan closed for Lunar New Year holidays, in addition to Presidents’ Day in the United States.

Last week, both benchmarks posted weekly declines with Brent settling about 0.5% lower and WTI losing 1% after comments from U.S. President Donald Trump that Washington could make a deal with Tehran over the next month.

The two countries are due to hold a second round of talks in Geneva on Tuesday over Tehran’s nuclear programme.

Iran is pursuing a nuclear agreement with the U.S. that delivers economic benefits for both sides, with energy and mining investments and aircraft purchases up for discussion, an Iranian diplomat was reported as saying.

The U.S. has dispatched a second aircraft carrier to the region and is preparing for the possibility of a sustained military campaign if the talks do not succeed, U.S. officials have told Reuters. Iran’s Revolutionary Guards have warned that in case of strikes on Iranian territory, they could retaliate against any U.S. military base.

“Increased Iranian tension could drive Brent to $80 a barrel. Fading tension would drop it back to $60 a barrel,” SEB analysts said in a note.

With U.S.-Iran tensions pushing up oil prices, the Organization of the Petroleum Exporting Countries and allies – together called OPEC+ – are putting a dampener on this bullishness by leaning toward a decision to resume output increases from April at their March 1 meeting following a three-month halt, Reuters reported.

Meanwhile, China’s Russian oil imports are set to climb for a third straight month to a new record in February after India slashed purchases on the back of U.S. pressure, according to traders and ship-tracking data.

Additional reporting by Mohi Narayan in New Delhi and Florence Tan in Singapore; Editing by Sonali Paul, Kevin Buckland and Andrei Khalip