Brent crude prices fall below $80 per barrel on after Iranian negotiators said progress had been made in peace talks with US
Oil prices are trading at their lowest level since March, though analysts say it may be too early to peg hopes on a sustained drop in energy prices despite progress in US-Iran peace talks this weekend.
Stephen Innes, an analyst with SPI Asset Management, says it is important “not to overcook Monday’s oil move” :
Brent shorts had built meaningfully last week, so part of the early upside looks like traders taking risk down rather than launching into a full-blown conflict trade.
When positioning has leaned too far into calm, it does not take much tension to force a little oxygen back into the price. That is less a declaration of war than a reminder that carrying shorts into a geopolitical negotiation is rarely a comfortable overnight position.
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