International crude oil prices fell sharply on Monday, retreating from multi-month highs, after the OPEC+ ratified plans to keep production steady in March and tensions seemingly eased between the United States and Iran. Brent, the global benchmark, dropped more than 4% to just above $66 per barrel, while the West Texas Intermediate (WTI) fell below $63 during Asian trading hours.
In India, shares of most oil marketing companies traded higher in early trading. Mangalore Refinery and Petrochemicals Ltd. jumped over 5% while Chennai Petroleum Corp. and Hindustan Petroleum Corp. gained more than 2%.
President Donald Trump on Sunday expressed hope that Washington could strike a deal with Iran, even as he moved significant naval assets closer to the country, escalating pressure amid rising rhetoric from Tehran. He said on Saturday that Iran was “seriously talking” with the US, shortly after Iran indicated that arrangements for talks were progressing. This marked a shift from last month’s heightened tensions, when Trump repeatedly threatened military action over Iran’s crackdown on nationwide protests, while Tehran also warned of retaliation.
Those exchanges had helped drive oil prices sharply higher in January on fears of supply disruptions in the region. Brent crude gained 16% for the month and went past $72 at one point. Adding to signs of de-escalation, reports suggested that Iran’s Revolutionary Guards’ naval forces have no plans to conduct live-fire exercises in the Strait of Hormuz, a vital global oil route.
On Sunday, the OPEC+ cartel of producers ratified plans to keep production steady in March — the last part of a three-month supply freeze. The Organization of the Petroleum Exporting Countries and its partners often respond cautiously to escalating geopolitical risks, typically waiting for changes in actual supplies before acting.
The International Energy Agency projects a record glut in global oil markets as demand growth slows while continues to swell in OPEC’s rivals, such as the US, Brazil, Canada and Guyana.
ALSO READ: ‘Hopefully We’ll Make A Deal’: Trump Warns Of Outcome As Iran Threatens Regional War
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