Oil Prices Slip Amid Easing U.S.-Iran Tensions; Traders Await Signing of Trade Dea By Investing.com


© Reuters.

Investing.com – Oil prices slipped on Monday in Asia amid easing U.S.-Iran tensions.

The U.S. was unchanged at $59.04 by 12:45 AM ET (04:45 GMT). Last week, the U.S. crude benchmark posted a 6.4% fall in prices, its biggest weekly loss in more than six months as tensions between the U.S. and Iran eased.

International slipped 0.1% to $64.92.

The threat of an outright war between the U.S. and Iran has receded since Tehran fired rockets at U.S.-Iraqi bases last week in retaliation for a U.S. airstrike that killed a top Iranian general.

Last week, the U.S. House of Representatives voted to curb U.S. President Donald Trump’s power to strike Iran. Meanwhile, in comments to Fox News, Vice President Mike Pence said the Islamic Republic has asked militias in the Middle East not to carry out attacks against U.S. interests.

“Without Iran-related energy disruption, additional non-OPEC supply will comfortably exceed demand, placing downward pressure on prices,” Stephen Innes, Asia Pacific Market Strategist at AxiTrader, said in a note cited by Bloomberg. Hopes of a U.S. inventories draw may support prices this week, he said.

The situation in Iran remained volatile, however, as its citizens protested for a second night after the government admitted on Saturday that it had mistakenly show down a Ukrainian passenger jet, killing all 176 people on board.

Iran’s government said Sunday it was forming a working group to probe the crash and compensate victims.

On the Sino-U.S. trade front, Beijing and Washington will reportedly sign a phase one trade deal on Wednesday at the White House.

There is no news of further trade talks, but Trump has earlier said that a phase two negotiations will soon start after the signing of the first deal.

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