America News Agency

Market holidays in China and the United States kept trading volumes low, while weak economic growth data from Japan triggered concerns about cooling demand.

Benchmark Brent crude futures for April fell 0.2% to $67.65 per barrel, while West Texas Intermediate (WTI) futures traded around $62.8 per barrel on Monday as investors closely monitored geopolitical developments.

Attention is focused on the second round of US-Iran talks scheduled for Tuesday. Tehran signaled that it is prepared to make concessions on its nuclear program if Washington lifts sanctions.

After restarting negotiations in early February, the US and Iran will hold a second round of talks in Switzerland this week regarding Tehran’s nuclear program.

However, the renewed dialogue coincided with the US sending a second aircraft carrier to the Middle East and indications that it is preparing for a sustained military operation against Tehran if the talks fail.

US President Donald Trump has also repeatedly warned Tehran to accept a deal or face further military action.

Concerns regarding Iran have supported oil prices in recent weeks, as traders priced in a higher risk premium due to fears of renewed hostilities between Tehran and Washington. A renewed conflict is expected to disrupt oil production in Iran.

However, the risk premium was partly offset by reports that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) plan to increase oil production starting in April.

The production increase will allow cartel members to benefit more from the recent rise in crude prices, but any increase in supply is likely to put pressure on prices in the long term. OPEC+ will meet on March 1.