Crude Oil Prices Fall After Two Days Of Advance As Iran Confirms US Talks

International crude oil prices declined following two days of advance on Thursday after Iran confirmed it would hold negotiations with the United States. The US benchmark West Texas Intermediate was down 1% to $64.40 per barrel in Singapore. Futures for Brent, the global benchmark, for April settlement closed 3.2% higher at $69.46 a barrel on Wednesday.

Iranian Foreign Minister Abbas Araghchi confirmed in a social media post that talks with the US will be held in Oman on Friday, clarifying the location of the encounter, reports said. A White House official confirmed that the two countries still plan to engage on a potential nuclear deal that was abandoned by Washington in 2017.

Uncertainty remains over the scope of the negotiations, with Tehran seeking to confine talks to its nuclear program, while the Trump administration wants to broaden the agenda to include Iran's ballistic-missile program, support for regional militant groups and human rights issues.

Crude prices had rallied over the previous two sessions as rising Middle East tensions lifted the geopolitical risk premium. Prices shot up following the US downing of an Iranian drone near an American aircraft carrier in the Arabian Sea on Tuesday. The incident unsettled energy markets, though President Donald Trump emphasized that diplomatic channels remain open.

Oil producers' cartel OPEC+ expects oil demand to gradually pick up from March or April and will decide on March 1 whether to resume monthly output increases after a first-quarter pause.

India imports about 88% of its crude oil, which is converted into fuels like petrol and diesel.

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