Ankara: Oil prices saw a significant decline on Monday, influenced by reports of ongoing discussions between the United States and Iran. This development helped reduce the risk premium in crude markets, alongside some profit-taking activities.
According to Azerbaijan State News Agency, the international benchmark Brent crude was trading at $65.64 per barrel by 9.56 a.m. local time, marking a 5.8% decrease from the previous close of $69.73. Similarly, the US benchmark West Texas Intermediate (WTI) fell by 6% to $61.50 per barrel, down from $65.46 in the prior session.
US President Donald Trump, in an interview with Fox News, confirmed that negotiations with Iran concerning its nuclear program are in progress, though he expressed limited optimism about reaching a final agreement. Trump also highlighted the movement of a "large fleet" towards Iran, suggesting a significant US military presence in the region. He noted that India would start purchasing oil from Venezuela instead of Iran, while leaving the option open for China.
The decline in oil prices followed last week's rise, which was fueled by concerns over potential US military action against Iran and supply disruptions caused by cold weather in North America. The news of the possible US-Iran talks contributed to easing these concerns.
Meanwhile, eight members of the OPEC+ group, which includes the Organization of the Petroleum Exporting Countries and some non-OPEC producers, reaffirmed their commitment to maintaining stability in oil markets. During an online meeting held on Sunday, the countries-Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman-agreed to halt production increases in March due to seasonal factors. They indicated that the 1.65 million barrels per day of output could be gradually restored based on market conditions.
The meeting also stressed the importance of full compliance with voluntary production cuts and compensation for any overproduction. The group plans to monitor market conditions monthly and has scheduled its next meeting for March 1, 2026. OPEC+'s decision to keep production steady is expected to maintain downward pressure on oil prices.