Oil prices remained largely unchanged on Monday as global investors monitored progress in Iran-U.S. nuclear negotiations and awaited key economic indicators from China. These developments are being closely watched for their potential impact on commodity demand, especially in light of recent U.S.-China trade tensions.
Brent crude futures fell slightly by 5 cents to $65.36 per barrel (as of 0022 GMT), while U.S. West Texas Intermediate (WTI) rose marginally by 3 cents to $62.52 per barrel. The front-month June WTI contract is set to expire on Tuesday, with the more active July contract slipping by 4 cents to $61.93.
Last week, both Brent and WTI benchmarks saw gains of over 1%, driven by a temporary truce between the United States and China. The agreement, which includes a 90-day suspension of additional tariffs, brought a wave of optimism to the market, particularly for energy traders.
Investors are now focused on upcoming Chinese economic data, including industrial output figures. Analysts from ANZ noted that any signs of economic weakness could quickly dampen the bullish sentiment sparked by the trade war pause.
Uncertainty surrounding the outcome of Iran-U.S. nuclear talks is also supporting oil prices. U.S. special envoy Steve Witkoff emphasized that any future agreement with Iran must include a halt to uranium enrichment—an expectation Iran rejected, highlighting its unwavering stance on nuclear development.
“There was a lot of hope being built into those talks,” said IG market analyst Tony Sycamore. “But realistically, Iran is unlikely to abandon its nuclear program, especially given the regional instability and the weakening of its proxy alliances.”
Elsewhere, geopolitical tensions flared in Europe as Russia detained a Greek-owned oil tanker after it departed from an Estonian port, further clouding the global energy outlook.
In the United States, Baker Hughes reported that active oil rigs dropped by one to 473 last week—the lowest count since January. This decline reflects a broader trend among U.S. producers to cut back on capital expenditure and slow production growth in the face of uncertain global demand.
