Crude Oil Closes Weaker After Positive Progress on Iran Talks

Crude oil closed lower Monday (Feb. 7) after signs of progress in nuclear talks with Iran. The situation in Ukraine remains tense. According to the U.S., Russia is on the verge of invading Ukraine.

  • WTI crude futures were down 99 cents, or 1.1%, at $91.32 a barrel.
  • BRENT crude futures were down 58 cents, or 0.6%, at $92.69 a barrel.

Talks with Iran and representatives from the world’s major economies appear to be well underway. Iran, however, continues to refuse to talk directly with the U.S. Now that the representatives have returned to Vienna, Austria, the eighth round of talks can begin. Representatives of both sides have indicated that the talks are making good progress, but in order to reach an agreement, both sides will have to lower their demands. The Iranian side in particular is expected to make concessions. Iran is demanding a full lifting of U.S. sanctions.

The situation in Ukraine must continue to be closely monitored after the United States revealed that the Russian army has deployed more than 100,000 troops along the Ukrainian border. According to the U.S., Ukraine is on the verge of being invaded by Russia. Just last week, Russian President Putin said the U.S. wants to drag Russia into a war. He stressed once again that the U.S. and other Western nations should stop provoking Russia.

Meanwhile, Russia and China deepened their partnership on the sidelines of the Winter Olympics in China. According to both sides, the cooperation is mainly in the fields of space, climate change, artificial intelligence, and control of the Internet. The official statement from both sides was, “Friendship between the two States has no limits, there are no ‘forbidden’ areas of cooperation.”

In addition, both were able to negotiate a new gas deal, according to which Russia will transport gas to China via a new pipeline for the next 30 years. The deal is said not to have been made in U.S. dollars.

Investors are waiting for the EIA’s weekly report on U.S. crude oil inventories, which will be released tomorrow.

The Spot Market is Open

Tuesday, February 8, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
10.35

91.28

-0.04

-0.04%

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