Brent crude prices fell slightly as investors weighed the risks of supply disruptions after Iran conducted naval exercises near the Strait of Hormuz ahead of nuclear talks with the US scheduled for later in the day.
This was reported by Economic Pravda with reference to Reuters.
The report said that Brent futures fell by 0.47% (32 cents) to USD 68.33 a barrel, after rising by 1.33% on Monday.
US WTI was at USD 63.51 a barrel, up 62 cents (0.99%), but this movement included all of Monday's dynamics, as the contract had no settlement price on Monday due to the Presidents Day holiday in the US.
Many markets are closed on Tuesday for the Lunar New Year holiday, including in mainland China, Hong Kong, Taiwan, South Korea and Singapore.
US President Donald Trump said on Monday he would be involved in the talks in Geneva "indirectly" and added that he believed Tehran wanted to make a deal.
Trump said over the weekend that regime change in Iran "would be the best thing that could happen."
"Market sentiment is closely linked to the tone and progress of these talks, which supports a geopolitical risk premium in prices," said Sugandha Sachdeva, founder of SS WealthStreet, a research firm in New Delhi.
Oil prices are likely to remain volatile, with sharp moves in both directions driven by diplomatic signals, not just fundamental supply and demand.
Iran on Monday began military exercises in the Strait of Hormuz, a key international waterway and oil export route for Gulf Arab states, which have called for a diplomatic resolution to the dispute.
Iran, along with its OPEC partners Saudi Arabia, the UAE, Kuwait and Iraq, exports most of its oil through the strait, mainly to Asia.
As Ukrainian News Agency earlier reported, oil prices rose on Tuesday, February 10, due to risks of supply disruptions from Middle Eastern countries.
Who we are: About us, Contacts. How we write news and our principles: Editorial code. We did our best. If you found this valuable – please support us.
To request a correction, please send an email.