Oil prices slipped on Tuesday as traders weighed the impact on supply from Russia-Ukraine peace talks and US-Iran negotiations, strong front-month physical demand in Asia and a cautious outlook for China’s economy.
Brent futures for July dipped 19 cents to $65.35 a barrel.
June U.S. West Texas Intermediate crude futures, which expire on Tuesday, gained 3 cents to $62.72, while the more active July contract slipped 17 cents to $61.97 a barrel.
Discussions on Iran’s nuclear programme would “lead nowhere” if Washington insisted that Tehran slash uranium enrichment activity entirely, state media quoted Deputy Foreign Minister Majid Takhtravanchi as saying on Monday.
The remarks came after U.S. special envoy Steve Witkoff reiterated on Sunday that Washington would require any new deal to include a pact to refrain from enrichment, a precursor to the development of nuclear bombs.
A deal would have paved the way for the easing of US sanctions and allowed Iran to raise oil exports by 300,000 barrels to 400,000 barrels per day, StoneX analyst Alex Hodes said.
Prices were also supported by expectations of near-term firm physical demand, amid healthy refining margins in Asia.
“The Asian buying cycle got off to a very mild start, but strong margins and the end of maintenance should still prove supportive,” said Sparta Commodities’ analyst Neil Crosby.
