WTI crude oil futures hovered around $63 per barrel on Monday after recording their first consecutive weekly decline of the year, as investors closely monitored a second round of US–Iran negotiations. The talks come amid a buildup of US military presence in the region, with President Trump repeatedly warning of possible strikes if no nuclear agreement is reached.
Over the weekend, Iran signaled a willingness to make concessions on its nuclear program, provided Washington engages meaningfully on sanctions relief. At the same time, a Ukrainian drone strike hit a Russian Black Sea port just ahead of fresh US-brokered peace talks between Russia and Ukraine, set to begin on Tuesday.
Despite these geopolitical tensions, oil prices remain under pressure due to abundant global supply. Market reports indicate that some OPEC+ members see scope to resume production increases as early as April. Adding to the bearish tone, the International Energy Agency reaffirmed its projection of a substantial market surplus in 2026 and revised down its forecast for global oil demand growth.
