Oil prices edge higher ahead of US-Iran talks
Oil prices edged higher on Monday, February 16, as investors assessed the implications of upcoming talks between the United States and Iran, as well as expectations of increased supply from the OPEC+ alliance.
Brent crude futures rose 41 cents, or 0.6%, to $68.16 a barrel. US West Texas Intermediate (WTI) crude futures climbed 43 cents to $63.32 a barrel.
Tamas Varga, an analyst at PVM Oil Associates, said concerns about supply disruptions due to tensions between the United States and Iran helped keep oil prices stable.
Both benchmarks posted weekly losses last week, with Brent falling about 0.5% and WTI losing about 1%, following comments by US President Donald Trump on Thursday that Washington could reach an agreement with Iran within the next month, which put downward pressure on prices at the time.
Washington and Tehran resumed negotiations earlier this month aimed at resolving their decades-long dispute over Iran's nuclear program and averting a new military confrontation. A second round of talks is scheduled to take place in Geneva on Tuesday.
Media reports on Sunday quoted an Iranian diplomat as saying that Tehran is seeking a nuclear agreement with the United States that would bring economic benefits to both sides, including potential investments in the energy and mining sectors, as well as ongoing discussions regarding aircraft purchase deals.
Tony Sycamore, a market analyst at IG, said that the two sides' adherence to their core red lines makes the prospects for an agreement slim, adding that the current situation could represent "the calm before the storm."
Meanwhile, US officials told Reuters that the United States has deployed a second aircraft carrier to the region and is preparing for a possible prolonged military campaign if the talks fail. In response, Iran's Revolutionary Guard warned that it would retaliate by striking any US military base if Iran is attacked.
