Crude prices edged down on Tuesday in quiet, holiday-affected trading, with investors closely watching upcoming diplomatic discussions between the United States and Iran.
A stronger U.S. dollar ahead of a packed week of economic releases and Federal Reserve signals also added pressure to oil markets.
Brent crude for April delivery slipped 0.3% to $68.45 per barrel, while West Texas Intermediate futures rose 1.1% to $63.45 per barrel at 21:00 ET (02:00 GMT). The sharper move in WTI reflected distortions from Monday’s U.S. market holiday.
Overall activity remained subdued due to Lunar New Year closures across several Asian financial centers, including China, Hong Kong, Taiwan, South Korea and Singapore.
Spotlight on U.S.–Iran meeting amid geopolitical strain
Media reports indicated that U.S. and Iranian officials are scheduled to convene in Geneva, Switzerland, to revisit Tehran’s nuclear enrichment program.
On Monday, President Donald Trump told reporters he would be “indirectly involved” in the negotiations, though he offered few details on what that involvement would entail.
The talks follow earlier rounds of dialogue this month that failed to deliver meaningful breakthroughs.
Reports also suggested Washington has reinforced its military footprint in the Middle East, including deploying a second aircraft carrier, while preparing for the possibility of extended operations if diplomacy falters.
As a result, oil prices continue to reflect an elevated geopolitical risk premium, given the potential for supply disruptions in the region.
Dollar strength weighs ahead of key U.S. data
Crude also faced headwinds from renewed dollar strength, as the greenback advanced in thin trading ahead of major U.S. economic reports.
The dollar gained 0.2% against a basket of major currencies on Tuesday.
Market participants are bracing for a series of data releases this week, including industrial production figures, trade statistics and, most notably, the Personal Consumption Expenditures (PCE) price index. The PCE reading — the Federal Reserve’s preferred inflation measure — is expected to play a significant role in shaping expectations for future interest rate moves.
Minutes from the Fed’s January policy meeting are also due and could provide additional clarity on the central bank’s outlook for monetary policy.
Leave a Reply