Oil remained relatively stable as investors monitor discussions between Iran and the United States, alongside data emerging from China. Oil prices exhibited stability as investors closely observed the ongoing Iran-U.S. nuclear negotiations while anticipating significant economic data from China in the context of prevailing trade tensions. Brent crude experienced a modest decline, settling at $65.36 per barrel, whereas U.S. WTI crude saw an increase, reaching $62.52. The market was also influenced by the uncertainty surrounding Iran’s nuclear ambitions and the escalating tensions between Estonia and Russia.

Oil prices exhibited minimal fluctuations on Monday as investors focused on the developments in Iran-U.S. nuclear negotiations and awaited significant economic indicators from China to evaluate the implications for its commodities demand amid ongoing trade tensions with the United States. Brent crude futures experienced a slight decline of 5 cents, settling at $65.36 a barrel by 0030 GMT, whereas U.S. West Texas Intermediate crude saw an increase of 3 cents, reaching $62.52 a barrel. The front-month June WTI contract is set to expire on Tuesday, while the more actively traded July contract experienced a decline of 4 cents, settling at $61.93 per barrel. Both contracts experienced an increase exceeding 1% last week following the agreement between the U.S. and China, the two largest economies and oil consumers globally, to implement a 90-day pause in their trade conflict, during which both parties would significantly reduce trade tariffs.

China is set to unveil a series of data points, including industrial output, later on Monday. “Any indication of weakness could undermine the sentiment that was elevated by the U.S. decision to pause Chinese tariffs,” ANZ analysts stated in a note. The ambiguity surrounding the results of the Iran-U.S. nuclear negotiations has also bolstered oil prices. U.S. special envoy Steve Witkoff stated on Sunday that any agreement between the United States and Iran should encompass a commitment to refrain from uranium enrichment, a remark that quickly elicited backlash from Tehran. “A significant amount of optimism was being generated from those discussions,” stated IG market analyst Tony Sycamore.

It is improbable that Iran would ever consent to relinquish its nuclear ambitions voluntarily, as it has consistently regarded these aspirations as non-negotiable. Furthermore, following the disintegration of its proxies, which historically served as a buffer between itself and Israel, he remarked, without clarifying whom he was alluding to. In Europe, tensions escalated between Estonia and Russia following Moscow’s detention of a Greek-owned oil tanker on Sunday, shortly after its departure from an Estonian Baltic Sea port.

In the U.S., producers reduced the count of active oil rigs by 1 to 473 last week, marking the lowest level since January, according to Baker Hughes’ weekly report, as they maintained a focus on reducing expenditures that may hinder U.S. oil output growth this year.