Oil prices increased on Monday after OPEC's de facto leader Saudi Arabia raised crude oil prices for Asia and the US while the ongoing US-Iran talks that could lift sanctions on Iran's oil exports reached a stalemate, preventing Iranian oil from soon hitting the market.
International benchmark Brent crude was trading at $71.57 per barrel at 0656 GMT for a 2.41% increase after closing the previous session at $69.88 a barrel.
American benchmark West Texas Intermediate (WTI) was at $68 per barrel at the same time for a 2.25% gain after trade ended at $66.50 a barrel in the previous session.
State oil giant Saudi Aramco announced its intention on Sunday to lower the price of Arab Light crude for its Asian and US customers by $0.80 in January.
The Saudi price cut came after the decision of the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, to raise production by 400,000 barrels per day (bpd) in January.
Investors are also monitoring renewed negotiations over the possible resumption of the landmark 2015 nuclear deal between Iran and six other powers in Vienna, which resumed last week.
However, talks that could pave the way for the removal of US sanctions on Iran and the resumption of oil exports were postponed until next week due to the Iranian government’s “sweeping demands”.
Iran and six other powers had been in talks since April to restore the 2015 nuclear deal that was terminated three years ago by former US President Donald Trump. His administration re-imposed sanctions that severely hampered Iran’s economy and drastically reduced its oil exports.
Although a slew of sanctions aimed at the energy industry in Iran was lifted on June 10, sanctions on oil exports remained in place.
Talks halted in June since the election of Iran's new hardline president and only resumed on Nov. 29.
By Sibel Morrow
Anadolu Agency
energy@aa.com.tr