(Bloomberg) — Oil edged higher in a choppy session as investors assessed the status of nuclear talks between the US and Iran.
West Texas Intermediate traded above $63 a barrel, with markets reacting sharply to headlines tied to the meeting. Iranian foreign minister Abbas Araghchi said the talks had a “good start,” even as the Wall Street Journal reported that Tehran stood by its refusal to end enrichment of nuclear fuel, a major sticking point for the US.
The escalation in the Middle East, which provides about a third of the world’s crude, has added a risk premium to benchmark oil prices. Traders have weighed the geopolitical tensions against an outlook for oversupply.
Still, futures in New York are on track for their first weekly retreat since mid-December as the US-Iran talks helped allay concerns over a broader conflict in the region.
Futures also extended gains after data showed US consumer sentiment unexpectedly improved to the highest in six months, allaying some concerns over an economic slowdown in the country that could lead to a potential slowdown in oil demand.
Meanwhile, in trilateral negotiations with the US, Ukraine and Russia agreed to exchange prisoners for the first time in five months as they sought to end their four-year conflict. Talks were making progress, with results expected “in the coming weeks,” Trump’s special envoy said.
Saudi Arabia cut prices for buyers in Asia by less than expected in a sign the kingdom has faith in demand for its barrels, although prices have still been reduced to the lowest since late-2020.
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–With assistance from Nicholas Lua and Weilun Soon.
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