FX.co ★ Oil Holds Decline Amid Easing Geopolitical Tensions

On Tuesday, WTI crude oil futures stabilized around $62.20 per barrel, following their most significant decline in six months. This decrease was prompted by easing geopolitical tensions, as the United States and Iran announced intentions to resume discussions on Friday. These talks aim to revive diplomacy regarding Iran's nuclear program and mitigate the risks of a broader regional conflict, subsequently reducing concerns about potential disruptions in Middle East oil supplies. Additionally, President Trump declared a reduction in tariffs on Indian goods from 25% to 18%, following an agreement with Prime Minister Narendra Modi to cease purchases of Russian oil, thus easing prolonged tensions between the two countries. Meanwhile, on the supply front, OPEC+ confirmed its decision to maintain steady production levels throughout March, ensuring sufficient supply as output increases were halted due to tepid seasonal demand.