Oil retreated as traders fretted about the impact of the US-led trade war on energy demand, while monitoring talks between Washington and Tehran over the Islamic republic’s nuclear program.

Global benchmark Brent fell more than 1% toward $67 a barrel — snapping a two-day gain — while West Texas Intermediate traded below $64. Data that’s set to show how President Donald Trump’s trade policies are affecting the US economy could provide fresh direction this week.

Iran’s foreign minister said his country has a “better understanding” with the US on a range of principles after talks Saturday on Tehran’s nuclear program. The discussions, which lasted more than three hours, will resume Wednesday in Oman, and have the potential to affect Iranian crude supplies. 

Oil has declined sharply this month, touching a four-year low at one point, driven by investors’ fear of that the onslaught of tariffs and counter-levies between the US and its biggest trading partners including China will sap crude demand. The decline has been compounded by an OPEC+ decision to bring back production at faster-than-expected pace, reviving concerns about a glut.

In Ukraine, meanwhile, President Volodymyr Zelenskiy accused Kremlin forces of violating an Easter Sunday truce declared by Russian President Vladimir Putin. The US earlier proposed to allies a possible easing of sanctions against Russia in the event of lasting ceasefire.

Trading volumes in crude futures may be lower than usual in Monday’s session, with some countries observing holidays to mark Easter. 

Prices

  • Brent for June settlement slipped 1.2% to $67.16 a barrel at 7:29 a.m. in Singapore.

  • Futures — which did not trade last Friday — gained 4.9% last week.

  • WTI for May delivery fell 1.3% to $63.82 a barrel.

. Read more on Markets by NDTV Profit.Global benchmark Brent fell more than 1% toward $67 a barrel — snapping a two-day gain.  Read MoreMarkets, Global Economics, Bloomberg 

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