Oil barely changed as investors watched China data and Iran-US talks

Monday saw minimal movement in oil prices as investors watched the result of the nuclear negotiations between the United States and Iran and important economic data that China was expected to release to gauge the effect on its demand for commodities in the wake of trade concerns with the United States.

U.S. West Texas Intermediate crude was up 3 cents at $62.52 per barrel at 0022 GMT, while Brent crude futures had down 5 cents to $65.36 per barrel. Tuesday marks the expiration of the front-month June WTI contract, while the more active July contract dropped 4 cents to $61.93 a barrel.

Following the agreement last week between the two largest economies and oil consumers in the world, the United States and China, to halt their trade war for ninety days in which both parties would drastically reduce trade tariffs, both contracts increased by more than one percent.

Later Monday, China will release a plethora of data, including industrial output.

A report from ANZ analysts stated, “Any indication of weakness could erode sentiment that was strengthened by the U.S. pause on Chinese tariffs.”

Oil prices were also bolstered by the uncertainty surrounding the U.S.-Iran nuclear negotiations.

U.S. special envoy Steve Witkoff quickly drew condemnation from Tehran when he stated on Sunday that any agreement between the United States and Iran must include an agreement not to enrich uranium.

“There was a lot of hope being built into those talks,” Tony Sycamore, an analyst for the IG market, declared.

In all likelihood, Iran will never voluntarily consent to quietly relinquish its nuclear goals, which it has consistently insisted are non-negotiable. He continued, “More so after the collapse of its proxies, which have acted as a buffer between itself and Israel in the past,” without naming individuals.

Moscow arrested a Greek-owned oil tanker on Sunday after it departed a port in the Baltic Sea of Estonia, escalating tensions between Estonia and Russia in Europe.

According to Baker Hughes’ weekly report, producers in the U.S. reduced the number of oil rigs in operation by 1 to 473 last week, the fewest since January, as they continued to concentrate on reducing expenditures that would impede the rise of U.S. oil output this year.