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Oil Steadies Near $69 Ahead of Second U.S.–Iran Talks as OPEC+ Weighs April Output Increase

A persistent risk premium from U.S.–Iran tensions is keeping crude supported.

A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, U.S. February 18, 2025.  REUTERS/Eli Hartman/File Photo
Miniatures of oil barrels and a rising stock graph are seen in this illustration taken January 15, 2024. REUTERS/Dado Ruvic/Illustration

Overview

  • Brent crude settled up 1.33% at $68.65 a barrel on Monday, with WTI near $62, as traders awaited Tuesday’s second round of U.S.–Iran talks in Geneva.
  • Washington has deployed a second aircraft carrier to the region, and Iran’s Revolutionary Guards warned they could strike any U.S. base if Iranian territory is attacked.
  • OPEC+ members are leaning toward resuming production increases from April after a three‑month pause, with a final decision expected at the March 1 meeting.
  • Analysts say prices carry a geopolitical risk premium and note crude would likely be below $60 without it, with limited scope to break sustainably above $70 absent supply disruption.
  • Market activity was muted by holidays in China, South Korea and Taiwan, and prices last week eased after President Trump suggested a deal with Iran could be reached within a month.