Crude Oil Extends Last Week’s Slump Amid Signs Of Progress In U.S.-Iran Talks

Crude for March delivery has slid $0.44 or 0.7 percent to $62.45 a barrel after tumbling 1 percent to $62.89 a barrel during last week’s trading.

The extended slump by the price of crude oil comes amid optimism nuclear talks between the U.S. and Iran could help prevent a military conflict.

According to the semiofficial Tansim news agency, Iranian Foreign Minister Abbas Araqchi said a “general agreement” has been reached on guiding principles in the second round of indirect negotiations with the U.S.

Araqchi described the talks as more constructive than the previous round in remarks after the conclusion of the second round of indirect talks, held at the Omani embassy in Geneva on Tuesday.

Meanwhile, traders seemed to shrug off news that Iran partially closed the Strait of Hormuz as its Revolutionary Guard conducts military drills in the strategically vital waterway.

The decrease by the price of crude oil also comes amid media reports indicating that the Organization of Petroleum Exporting Countries is leaning towards a resumption in oil output increases from April.

No decision has yet been made, and talks will continue in the weeks ahead of the March 1 meeting, Reuters said citing sources.

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