West Texas Intermediate traded near $62 a barrel after sliding 4.7% on Monday, while Brent futures finished above $66.
US President Donald Trump said discussions with Iran over a new nuclear deal may begin within days, after Tehran signalled it was ready to engage.
Due to strong selling pressure on commodities, especially metals, crude also suffered. As they resumed their retreat that began on Friday, gold plunged as much as 10% on Monday, and copper at one point lost more than 5%.
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The abrupt decline in oil prices occurred after WTI’s greatest monthly advance since 2023, which was underpinned by broad-based flows into commodities. Against a broader backdrop of increasing supplies, the first month of the year was shockingly tight due to the possibility of conflict with Iran and isolated supply disruptions.
Elsewhere, Trump said he would pull back punitive tariffs on India in return for an agreement that Prime Minister Narendra Modi would cease importing Russian oil, alleviating months of tension between the two countries. Moscow’s oil shipments to Indian ports have plummeted to their lowest point in almost three years, adding to the world’s huge stock of unsold sanctioned barrels.
(Edited by : Juviraj Anchil)