Oil prices held steady on Tuesday as uncertainty over U.S.-Iran nuclear talks and Russia-Ukraine peace efforts weighed on the market.
Meanwhile, fresh government data from China pointed to a cautious economic outlook in the world’s largest crude importer.
Brent crude futures slipped 25 cents, or about 0.4%, to $65.28 a barrel by midday in London. U.S. West Texas Intermediate crude for June, which expires Tuesday, fell 20 cents, or 0.3%, to $64.60. The more active July contract was down 19 cents to $61.95.
In Iran, Supreme Leader Ayatollah Ali Khamenei expressed skepticism over the outcome of nuclear talks with the United States. Tehran is currently reviewing a proposal to begin a fifth round of negotiations.
A potential deal could allow Iran to increase oil exports by several hundred thousand barrels per day if sanctions are lifted.
Elsewhere, oil markets were cautious as President Joe Biden indicated he was not prepared to align with European allies on additional sanctions against Russia. At the same time, Russian President Vladimir Putin and Ukrainian leaders agreed to begin ceasefire negotiations, though an immediate resolution appeared unlikely.
In China, industrial production and retail sales growth slowed, raising concerns about future fuel demand. The data, however, did not account for a recent 90-day pause in trade tariffs between the United States and China, and some late signs of recovery in Chinese trade emerged on Monday.
Traders remained focused on geopolitical developments and global economic indicators, with sentiment continuing to shift based on headlines and diplomatic signals.
