Oil prices traded largely unchanged as investors balanced diplomatic developments involving the United States and Iran against expectations of higher global supply.
Brent Crude edged slightly higher to $67.78 a barrel while U.S. West Texas Intermediate hovered near $62.91 amid thin trading conditions.
A U.S. holiday and Lunar New Year closures across parts of Asia reduced liquidity and contributed to muted price movements, according to reports.
Diplomatic Developments In Focus
Washington and Tehran are scheduled to hold a second round of negotiations in Geneva following renewed dialogue earlier this month.
The talks aim to address the longstanding dispute surrounding Iran’s nuclear program and prevent escalation into military confrontation.
Officials have suggested economic cooperation including energy investments and aircraft purchases could form part of a potential agreement.
However, market analysts warn expectations remain low due to entrenched political positions on both sides.
Geopolitical Risks Persist
Military tensions still linger with the United States deploying an additional aircraft carrier while preparing contingency plans if negotiations fail.
Iran has warned it could retaliate against American bases should strikes occur, keeping geopolitical risk premiums embedded in oil pricing.
These uncertainties continue to influence short-term volatility across global energy markets.
Supply Expectations From OPEC+
Meanwhile OPEC+ producers are considering increasing output from April after a three-month pause to meet anticipated summer demand.
Higher supply could offset price support generated by geopolitical tensions and limit sustained upward momentum in crude benchmarks.
Analysts believe inventory data and diplomatic developments will dominate trading direction in the near term.
With demand signals from China temporarily absent, markets may experience erratic two-way movements as investors react to headlines.