Brent crude futures fell by more than 1 percent on Monday, reaching around $67 per barrel, as progress in nuclear negotiations between the United States and Iran eased concerns about potential supply constraints. Iran’s foreign minister stated that the two countries agreed on Saturday to begin drafting a framework for a potential nuclear deal. An American official also described the discussions as ‘very good progress.’ This followed the Trump administration’s imposition of new sanctions against Chinese importers of Iranian oil last week. The third round of high-level negotiations is set to take place next Saturday in Oman. Prices also decreased due to worries that the U.S.-led trade war could slow global economic growth and in turn reduce energy demand. Additionally, OPEC+ is expected to continue increasing its production by 411,000 barrels per day in May, although some of this increase could be offset by reductions from countries exceeding their quotas.

Brent crude oil prices rose above $66 a barrel on Thursday, marking a second consecutive session of gains amid concerns about supply cuts stemming from new U.S. sanctions against Iran. Trump issued new sanctions on Wednesday against Iranian oil exports, including against a Chinese-based oil refinery, increasing pressure on Tehran amid ongoing nuclear negotiations. Fears of supply were further heightened after OPEC+ announced on Wednesday that it had received updated plans from Iraq, Kazakhstan, and other members to further reduce production to offset higher pumping above quota. However, OPEC, the International Energy Agency, Goldman Sachs, and JP Morgan lowered their forecasts for oil price and demand growth earlier this week amid escalating trade tensions. On the demand side, prices were supported by hopes for U.S.-China trade negotiations after China expressed openness to talks, provided certain key preconditions were met. For the week, prices have risen by more than 2%.