Oil prices were little changed on Monday as markets focused on the ongoing dialogue between the US and Iran amid concerns over potential supply disruptions in the Middle East, while official holidays in China and the US limited trading volumes.
International benchmark Brent crude traded at $67.32 per barrel at 9.46 a.m. local time (0646 GMT), up 0.18% from the previous close of $67.19.
US benchmark West Texas Intermediate (WTI) increased 0.2% to $62.81 per barrel, compared with $62.67 in the previous session.
Second round of nuclear negotiations between the US and Iran is expected to take place on Tuesday in Geneva, Switzerland.
Positive progress in the talks and the possibility of sanctions relief could ease concerns over supply disruptions in the Middle East, which holds a significant share of global oil reserves, thereby putting downward pressure on prices.
However, remarks by US President Donald Trump suggesting preparations for a prolonged military operation against Tehran if the talks fail have supported prices on the upside.
On Feb. 12, Trump said the US wanted to reach an agreement with Iran and that negotiations were ongoing, warning that failure to secure a deal would lead to a second stage that would be very difficult for Tehran, though he stressed that he was not seeking such an outcome.
Upcoming talks in Geneva have led to a balancing act in the oil market between supply expectations and the geopolitical risk premium.
Meanwhile, official holidays in China and the US have further dampened market activity.
Today marks the eve of the Spring Festival, also known as Lunar New Year's Eve, in China and is considered one of the first days of the official holiday period. Financial markets remain largely closed during this peak travel season.
The Spring Festival falls on Feb. 17 this year. While the official holiday lasts nine days, heavy travel is expected to continue until March 13.
In the US, markets will also be closed today due to the Presidents Day holiday. Reduced trading volumes in the US and China, the world's two largest oil consumers, have lowered liquidity in global oil markets, leading prices to follow a cautious and sideways trend.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr