FX.co ★ Oil Attempts Rebound

On Tuesday, West Texas Intermediate (WTI) crude oil futures experienced fluctuations, hovering around $62.50 per barrel, following declines over the previous two sessions. This volatility was largely due to reduced geopolitical tensions and uncertainty surrounding trade discussions. The primary area of attention was potential nuclear negotiations between the United States and Iran. President Donald Trump suggested that talks could commence soon, corroborated by reports indicating that U.S. military forces were repositioning away from Iran, thereby diminishing concerns about regional conflict. Additionally, market participants are keenly observing the possibility of a trade agreement between the U.S. and India. Trump indicated that tariffs on India might be lowered if the country ceases its purchase of Russian oil. While India has yet to confirm this strategy, it has already reduced its import of Russian crude to its lowest level in over three years, leading to a surplus of unsold Russian oil globally. Concurrently, OPEC+ reiterated its commitment to maintain steady production levels into March, ensuring a sufficient supply after withholding output increases amidst low seasonal demand.