-- Crude oil prices saw losses on Tuesday as the market looks forward to peace talks between the U.S. and Iran this week.
Brent crude at last look lost 0.4% to US$95.13/barrel and West Texas Intermediate crude fell 1.8% to $88.04/barrel. Investors are focused on the likelihood that the talks will result in an extension of the ceasefire or a final agreement, easing concerns about disrupted supply flows through the region, Reuters said in a Tuesday report.
However, the possibility of further conflict and prolonged supply disruptions remain. "We believe markets are underpricing the ongoing supply disruption. Optimism appears to be clouding the reality of the supply shock," Reuters quoted ING analysts as saying in a note.
"We continue to lean toward a [memorandum of understanding] being signed and/or the ceasefire being extended this week, potentially evolving into a broader agreement," Citi analysts were quoted as saying. "That said, we remain prepared to pivot toward a more protracted disruption scenario should negotiations falter this week."
However, no decision has been made to attend on the part of Iran, an Iranian official said in the report.