U.S. crude futures fell 11 cents, or 0.2%, to $66.20 a barrel. That’s after rising to $67.28 in the previous session, the highest since August 4.“Crude oil markets remained tense as US-Iran talks resume this week,” Daniel Hynes, an analyst at ANZ, said in a research note.
“Renewed trade tensions also weighed on sentiment.”
Iran and the US will hold a third round of nuclear talks in Geneva on Thursday, Oman Foreign Minister Badr Albusaidi said on Sunday.
The United States wants Iran to give up its nuclear program, but Iran has firmly refused and denied that it is trying to develop a nuclear weapon. The State Department is withdrawing non-essential government personnel and their families from the U.S. Embassy in Beirut, a senior State Department official said Monday, amid growing concerns about the risk of military conflict with Iran.
US President Donald Trump said in a social media post on Monday that it will be a “very bad day” for Iran if it does not make a deal.
“Crude oil remains near the top of the $55-$66.50 trading range defined over the past six months,” Tony Sycamore, an IG market analyst, said in a note to clients.
“A sustained break above the top of this range would open the way for further gains towards $70.00-$72.00. Conversely, signs of de-escalation would likely trigger a retracement towards $61.00.”
On trade policy, Trump on Monday warned countries against withdrawing from recently negotiated trade deals with the US after the Supreme Court struck down his emergency tariffs. He said he would hit them with much higher tariffs under various trade laws.
Trump said Saturday he would raise a temporary tariff from 10% to 15% on U.S. imports from all countries, the maximum level allowed under the law.
Meanwhile, Ukrainian drones have struck a Russian pumping station serving the Druzhba oil pipeline set up to supply Moscow crude to Eastern Europe, a Ukrainian security official said on Monday.
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