SINGAPORE, April 21 (Reuters) – Oil prices dropped approximately 1% on Monday following advancements in nuclear talks between the United States and Iran, which lessened concerns over potential supply disruptions from a key Middle Eastern producer.
Brent crude futures decreased by 70 cents, or 1.03%, to \$67.26 a barrel at 0030 GMT after closing up 3.2% on Thursday. U.S. West Texas Intermediate crude was at \$64 a barrel, down 68 cents, or 1.05%, after settling up 3.54% in the previous session. Thursday marked the last settlement day of the week due to the Good Friday holiday.
The U.S. and Iran reportedly began drafting a framework for a possible nuclear deal, according to Iran’s foreign minister, following discussions described by a U.S. official as yielding “very good progress.”
This progress in nuclear negotiations comes after the U.S. imposed additional sanctions last week, targeting a China-based teapot oil refinery accused of processing Iranian crude, thereby increasing pressure on Tehran amid the talks. Teapot refers to smaller, independent processors in the industry.
Fears of tightened Iranian oil supply and optimism regarding a trade deal between the United States and the European Union propelled both Brent and WTI prices up roughly 5% last week, marking their first weekly gain in three weeks.
— new from Reuters