Oil Prices Flat as US-Iran Nuclear Talks and Trade Worries Calm Markets

Crude oil prices were steady on February 3 as easing US-Iran tensions and trade uncertainty kept markets cautious. WTI traded near $62.5/barrel, while Brent stayed around $66. Possible nuclear talks and a steady OPEC+ output plan weighed on prices.

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Prices show mixed movement after recent losses

Crude oil prices were mostly flat on Tuesday, February 3, as markets balanced easing global tensions with ongoing trade uncertainty. US West Texas Intermediate (WTI) crude traded around $62.5 per barrel, swinging between small gains and losses after falling for two straight sessions, as reported by Trending Economics. Brent crude was also little changed, slipping 3 cents to $66.27 per barrel, while WTI edged up 3 cents to $62.17 per barrel.

Oil prices had dropped more than 4% on Monday, following comments from US President Donald Trump that Iran was “seriously talking” with Washington. These remarks reduced fears of a fresh conflict in the Middle East, a key oil-producing region.

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Focus on possible US-Iran nuclear talks

The main driver for oil markets remains the possibility of renewed nuclear talks between the United States and Iran. Officials from both countries have indicated that negotiations could resume on Friday in Turkey. President Trump said talks could begin soon but also warned that serious consequences could follow if no agreement is reached.

Reports showing US military forces moving farther away from Iran helped calm market nerves. This shift lowered the risk of supply disruptions, which usually push oil prices higher. Analysts said recent sharp price moves appear driven more by investor mood than by actual changes in oil supply or demand.

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Trade talks and India’s oil imports under watch

Markets are also closely watching a possible US-India trade deal. President Trump said tariffs on Indian goods could be reduced if India stops buying Russian oil. India has not officially confirmed such a move, but data shows its imports of Russian crude have already fallen to the lowest level in over three years.

This decline has added to the volume of unsold Russian oil in global markets, increasing supply pressure. A stronger US dollar has also weighed on oil prices, as it makes crude more expensive for buyers using other currencies.

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OPEC+ maintains steady output plan

On the supply side, OPEC+ has reaffirmed its decision to keep oil production steady in March. The group earlier paused output increases due to weak seasonal demand and ample supply. This move has helped prevent prices from rising sharply despite earlier gains.

Analysts said the oil market is currently well supplied, and without a major geopolitical shock, prices may remain under pressure in the near term.

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Recent performance and market outlook

According to market data, crude oil rose to $62.57 per barrel on February 3, up 0.70% from the previous day. Over the past month, prices have increased 7.29%, but crude remains 13.93% lower than a year ago.

Senior analyst Priyanka Sachdeva of Phillip Nova said recent swings reflect sentiment-driven trading rather than strong fundamentals. She noted that after last week’s rally, prices quickly fell as global markets turned volatile.

For now, investors are expected to remain cautious as they await clarity on US-Iran talks, trade negotiations, and global demand trends.