Oil prices fell on Tuesday, February 3, falling for a second day in a row, as the market weighs the possibility of a reduction in tensions between the US and Iran, while a stronger dollar further pressures prices.
This is reported by Economic Pravda with reference to Reuters.
The report said that Brent crude futures fell by 39 cents, or 0.5%, to USD 65.91 a barrel.
West Texas Intermediate crude was at USD 61.83 a barrel, down 31 cents, or 0.5%.
Oil prices fell by more than 4% on Monday after US President Donald Trump said that Iran was "seriously negotiating" with Washington, indicating a de-escalation of tensions with the OPEC member.
Iran and the United States are expected to resume nuclear talks in Turkey on Friday.
"The sharp swings in oil prices over the past few sessions have been more akin to sentiment-based trading than any major fundamental changes," said Priyanka Sachdeva, senior market analyst at Phillip Nova.
The U.S. dollar index, which has been hovering near a one-week high, added to the pressure on prices.
A stronger dollar is weighing on foreign buyers' demand for dollar-denominated oil.
On the trade front, Trump announced a deal with India on Monday that would slash U.S. tariffs on Indian goods from 50% to 18% in exchange for India ending purchases of russian oil and lowering trade barriers.
Some analysts said they expected volatile price movements this month.
As Ukrainian News Agency earlier reported, oil prices fell slightly on Tuesday, January 27, despite a severe snowstorm in the United States, while investors are watching for the resumption of oil supplies from Kazakhstan.
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