Crude prices fall for a second session after reports of progress in Washington-Tehran talks, easing inflation concerns for investors.
Global stock markets showed little direction in early trade as oil prices extended their decline, dropping 1.2% to USD 78.50 a barrel. The pullback follows unconfirmed reports that the US and Iran are nearing a limited agreement to de-escalate tensions in the Persian Gulf.
Brent crude had risen 4.7% over the previous week on supply fears after attacks on Russian refineries. Analysts had expected a consensus print of USD 80.20 for today’s session. The last comparable diplomatic effort in 2018 saw oil prices fall 18% over three months.
Equity futures in Europe and Asia remained flat, while US contracts edged up 0.1%, reflecting cautious optimism about lower input costs.