Brent declines amid US-Iran nuclear talks

The front-month ICE Brent contract has declined by $0.83/bbl on the day from Friday, to trade at $67.41/bbl at 09.00 GMT.

IMAGE: Getty Images

Upward pressure:

Brent crude’s price has found some support after the European Commission (EC) proposed a 20th package of sanctions against Russia, a move that could significantly tighten curbs on Moscow’s energy trade.

If implemented, the sanctions will prevent EU-based firms from providing shipping, insurance, financing and other maritime services for Russian crude at any price.

“On energy, we introduce a full maritime services ban for Russian crude oil. It will slash further Russia's energy revenues and make it more difficult to find buyers for its oil,” the EC said in a statement.

Moreover, the package adds an additional 43 vessels to its shadow fleet blacklist, bringing the total number of banned Russia-linked vessels to around 640.

Downward pressure:

Brent crude’s price has lost momentum as nuclear talks between the US and Iran appeared to have made some progress – easing supply concerns.

“Iran enters diplomacy with open eyes and a steady memory of the past year,” Iran’s Foreign Minister Abbas Araghchi wrote on social media platform X (formerly Twitter).

Washington and Tehran have agreed to continue the indirect talks about the latter’s nuclear ambitions, Reuters reported.

“Oil prices came under renewed pressure… after nuclear talks between the US and Iran were seen as constructive,” two analysts from ING Bank noted.

By Aparupa Mazumder

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