Iran And US Talk Nuclear Presses World Oil Prices

Illustration. (Photo: Doc. Antara)

JAKARTA - World oil prices were observed to fall slightly at the close of trading Monday (Tuesday 8 February morning WIB). The drop comes amid vague progress in nuclear talks between the United States and Iran, which could lead to the removal of US sanctions on Iranian oil sales.

Brent crude futures for March delivery slipped 58 cents, or 0.6 percent, to $92.69 a barrel after hitting their highest level in seven years or since October 2014.

Meanwhile, West Texas Intermediate (WTI) crude futures for April delivery fell 99 cents, or 1.1 percent, to 91.32 dollars per barrel.

Reported by Antara, world oil prices rallied for the seventh week in a row amid supply concerns triggered by the cold US weather and political turmoil between the world's major producers.

If US sanctions were lifted, Iran could quickly export millions of barrels of crude and help lower world oil prices.

Last weekend, Friday, February 4th. US President Joe Biden's administration eased sanctions on Iran to allow international nuclear cooperation projects.

Although the sanctions waivers have had limited impact on Iran's currently struggling economy, markets are viewing the move as a signal for both parties to reach a deal. In fact, it is rumored that the two sides from the US and Iran will meet today in the Austrian capital.

"In addition to the excitement that comes from the negotiations, the Biden Administration is feeling pressure to reduce inflation. And, the fastest way to do that is to lower energy prices," said Mizuho Energy Futures Director Bob Yawger.

Analysts had previously predicted that world oil prices, which have climbed 20 percent since the start of the year, would likely exceed $100 per barrel due to high global demand.