8 Feb 2022
Oil Loses 7-Year High Streak before Talks between U.S. and Iran
The Index Today
Oil prices retreated on Tuesday prior to indirect U.S.-Iran political negotiations pertaining to a potential nuclear deal that could withdraw sanctions on Iranian oil sales which can possibly boost global oil supply.
Brent crude dropped by 0.15% to $92.55 per barrel by 0347 GMT. This comes after it hit a seven-year high on Monday at $94. U.S. West Texas Intermediate crude dipped by 1 cent to $91.31 per barrel.
Oil was able to reach seven-year highs recently, bolstered by geopolitical tensions between Russia and Ukraine, inclement weather conditions in the U.S., and by ever-growing demand as world markets recover from their pandemic-induced slump.
The U.S. and Iran are holding implicit talks in Vienna over the 2015 Iran nuclear deal. While the U.S. is reportedly amenable to removing certain sanctions, Iran seeks a complete elimination of the same along with an assurance of zero penalties moving forward.