Crude prices fell sharply in the overnight sessions as traders calculated the pressure on the commodity with rising supply from OPEC and possibly Iran as demand outlook in peak summer season weakened with a resurgence of the Covid infection globally.
Investors are keenly watching the indirect talks between Iran and the United States as part of negotiations to revive the 2015 nuclear deal which could lead to increased oil supply from Iran.
Talks will be held in Vienna today and may present a possible path toward removing sanctions on the Middle Eastern country’s oil exports
Meanwhile OPEC+ led by Saudi Arabia have agreed to to boost production from May onwards which is also keeping prices in check as global demand outlook is slumping with resurgence of Covid-19 cases around the world.