By Seher Dareen LONDON, Jan 30 (Reuters) – Oil prices fell nearly 1% on Friday on signs the U.S. may engage in dialogue with Iran over its nuclear programme, reducing concern over potential supply disruptions from a U.S. attack. Brent crude futures fell 68 cents, or nearly 1%, to $70.03 a barrel by 0958 GMT. […]
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Oil slides as Trump signals dialogue with Iran over nuclear programme
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By Seher Dareen
LONDON, Jan 30 (Reuters) – Oil prices fell nearly 1% on Friday on signs the U.S. may engage in dialogue with Iran over its nuclear programme, reducing concern over potential supply disruptions from a U.S. attack.
Brent crude futures fell 68 cents, or nearly 1%, to $70.03 a barrel by 0958 GMT. The March contract expires later on Friday. The more active April contract lost 80 cents, or 1.15%, to $68.79.
U.S. West Texas Intermediate crude dropped 72 cents, or 1.1%, to $64.70 a barrel.
“President Trump’s willingness to give diplomacy a chance regarding Iran seemingly makes a U.S. military intervention less likely than yesterday,” said PVM Oil Associate analyst Tamas Varga.
Middle East tensions and oil prices had increased this week as the U.S. has strengthened its military presence in the region. U.S. President Donald Trump urged Iran on Wednesday to make a deal on nuclear weapons or face an attack but on Thursday said he was planning to speak to the country’s leaders.
Despite Friday’s declines, benchmark prices remained on track for large monthly gains. Brent crude was set for its biggest monthly jump since January 2022 and WTI was poised for its largest monthly gain since July 2023.
Price pressure came from a rise in the dollar after it hit a four-year low earlier in the week. Friday’s gain followed Trump’s announcement that he would soon name his nominee to head the Federal Reserve, easing fears of a government shutdown.
A stronger dollar can limit demand from oil buyers paying in other currencies.
“Rising U.S. crude oil output after shutdowns and Kazakhstan nearing the resumption of production at the Tengiz oilfield also contribute to the change in sentiment, and given the week’s bullish performance, it is reasonable to expect some profit-taking ahead of the weekend,” Varga added.
Meanwhile, peak maintenance periods for Russian primary oil refining this year are expected this month and in September, based on Reuters calculations using estimates from industry sources.
(Reporting by Seher DareenAdditional reporting by Florence Tan and Siyi Liu in SingaporeEditing by David Goodman)