02.02.202615:00:01UTC+00Oil Slides as Iran Talks Ease Risks

WTI crude oil futures experienced a significant decline of over 4.5%, settling at $62.2 per barrel on Monday. This marked the most pronounced single-day decrease in over six months and a retreat from the four-month peak of $65.4 reached on January 29. The decline occurred as geopolitical risk premiums diminished. U.S. President Donald Trump announced ongoing discussions with Iran, alleviating concerns about potential short-term supply disruptions in the Middle East. Additionally, Iranian authorities expressed a willingness to engage in talks, which helped ease market tensions that had previously factored in the risk of conflict. With no immediate supply disruptions realized, oil prices relinquished part of the risk premium accumulated in January. The decline in oil prices coincided with a broader selloff in the commodity sector, particularly in metals, which exerted downward pressure on energy prices. On the supply front, OPEC+ confirmed its commitment to maintaining current output levels through March, preserving ample supply conditions after halting production increases due to weaker seasonal demand.