Oil steady as traders weigh supply risks heading into key US-Iran talks

Core Viewpoint - Oil prices remain steady as traders evaluate supply risks amid U.S.-Iran nuclear talks and Iranian military drills in the Strait of Hormuz [1] Oil Market Overview - Brent crude futures decreased by 0.2% to $68.59 per barrel, following a 1.3% increase on the previous day [1] - U.S. West Texas Intermediate crude rose by 1.34% to $63.73 per barrel, reflecting price movements from the previous day due to the U.S. Presidents Day holiday [1] - The market is unsettled due to ongoing geopolitical uncertainties, particularly in the Middle East and the Ukraine situation [1] Geopolitical Factors - Iran's military drills in the Strait of Hormuz, a crucial oil export route, have raised concerns about potential supply disruptions [1] - OPEC+ is considering increasing oil output from spare capacity in response to potential disruptions, aiming to prepare for peak summer demand [1] Future Price Projections - Citi forecasts that if Brent crude remains in the $65 to $70 per barrel range due to Russian supply disruptions, OPEC+ may respond by increasing output [1] - The expectation is that both Iran and Russia-Ukraine deals could occur by summer, potentially leading to a decline in Brent prices to $60-62 per barrel [1]