Oil fell for third day as US-Iran nuclear talks weigh on market

Oil prices fell for a third consecutive session on Tuesday as investors weighed the potential impact of renewed US-Iran nuclear negotiations. 

Brent crude settled at $70.77 per barrel, down 72 cents or 1%, while US WTI declined 68 cents, or 1%, to $65.63.

Tehran indicated it is prepared to take any necessary steps to reach a deal with the US ahead of a third round of talks on Thursday in Geneva. The remarks follow weeks of increased US military deployments in the region, underscoring the persistent geopolitical uncertainty shaping market sentiment. Analysts say that while supply concerns remain, attention is increasingly focused on how diplomatic developments could influence regional risk premiums.

Data from the American Petroleum Institute (API) showed crude inventories rose by 11.43 million barrels in the week ended February 20, well above analysts’ expectations of a 1.5-million-barrel gain. Gasoline and distillate stocks, by contrast, fell, highlighting ongoing demand pressures and creating a mixed signal for traders. Investors await official figures from the US Energy Information Administration on Wednesday for confirmation.

Overall, the combination of elevated geopolitical risk and unexpected crude stock builds weighed on prices, keeping traders cautious as the market seeks clarity on both the nuclear talks and US supply trends.

Written by: Farid Muzaffar