Oil prices steadied on Tuesday as markets digested mixed signals from U.S.-Iran nuclear negotiations and cautious economic data from China, the world’s largest crude importer.
Brent crude for July delivery slipped 7 cents, or 0.1%, to $64.75 a barrel by 0947 GMT. U.S. West Texas Intermediate (WTI) futures for June, expiring today, held flat at $64.80. The more liquid July WTI contract edged down 5 cents to $62.10.
The slight losses came as traders remained wary over whether diplomatic efforts between Washington and Tehran would translate into concrete progress. Iran’s Supreme Leader Ayatollah Ali Khamenei cast doubt on the outcome of the nuclear talks, according to state-backed Mehr News Agency, even as discussions of a fifth round of negotiations were underway.
“If a deal materializes, Iran could boost oil exports by up to 400,000 barrels per day,” said Alex Hodes, analyst at StoneX, in a report. “That’s enough to weigh down prices in the short term.”
Meanwhile, geopolitical tensions in Eastern Europe offered no clear resolution. Although Russia and Ukraine agreed to initiate ceasefire talks, U.S. President Donald Trump signaled hesitancy in joining European allies on further sanctions against Moscow.
“An immediate resolution of the Russia-Ukraine conflict still looks unlikely,” said Bjarne Schieldrop, chief commodities analyst at SEB. “More Russian oil could return to market, but timing and OPEC+ commitments make that uncertain.”
Adding to the cautious sentiment, fresh Chinese economic data revealed slower-than-expected industrial output and retail sales. Analysts flagged concerns over the strength of China’s fuel demand, despite a recent 90-day pause in tariffs between Washington and Beijing.
Goldman Sachs analysts, however, noted signs of recovery, citing improved Chinese trade flows late Monday. The market, though, remains sensitive to headline-driven swings.
“Beyond the macroeconomics and geopolitics, it’s difficult to tell when the mood might make a handbrake turn,” said Tamas Varga, oil analyst at PVM.
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