- The price of WTI crude oil is falling amid signs of advancement in US-Iran discussions regarding nuclear policy, which could lead to Iranian oil supply returning to global markets.
- Oil prices are experiencing increased downward pressure due to the possibility of OPEC+ deciding to raise output for the second month in a row.
- Market sentiment for oil may also be negatively impacted by indications of a slowdown in demand from China.
West Texas Intermediate (WTI) crude is currently trading down, hovering around $62.70 a barrel during the European trading session on Monday. The decline in crude oil values persists as advancements in US-Iran nuclear negotiations suggest a potential resurgence of Iranian crude in the global marketplace. Moreover, anticipation that the group of oil-producing nations known as OPEC+, along with their allies, might decide to boost production for a second straight month is contributing to the downward pressure on oil values.
Nevertheless, WTI prices may experience a partial rebound, fueled by expectations of reduced trade friction between the US and China. On Friday, China declared exemptions from its substantial 125% tariffs for specific US imports, generating optimism that the prolonged trade conflict between the world’s two largest economies could be approaching a settlement.
Furthermore, US Agriculture Secretary Brooke Rollins stated on Sunday that the Trump administration is engaged in daily dialogues with China concerning tariffs. Rollins also indicated that negotiations with other trading partners are advancing, with several trade agreements “very close” to completion. Conversely, US Treasury Secretary Scott Bessent did not corroborate Trump’s assertion of ongoing discussions with China, and Beijing refuted that any such talks were in progress.
