Oil prices fell over $1 on Tuesday, reversing gains in the previous session, on expectations peace talks between the U.S. and Iran will take place this week and lead to more supply to flow from the key Middle East producing region.
Brent crude futures declined $1.04, or 1.1%, at $94.44 a barrel at 0600 GMT. U.S. West Texas Intermediate (WTI) for May fell $1.66, or 1.9%, to $87.95. The May contract expires on Tuesday and the more-active June contract was down $1.24, or 1.4%, at $86.18.
Both benchmarks surged on Monday, with Brent up 5.6% and WTI up 6.9%, after Iran again shut the Strait of Hormuz, closing the key oil transport artery, and the U.S. seized an Iranian cargo ship as part of its blockade of the country's ports.
Still, investors are focusing on the likelihood talks this week will result in the extension of the existing ceasefire or a final agreement, though the chance of further conflict and disruptions to oil flows remains.
Source : thestar.com