Crude oil futures ended lower with cut of over two percent on Tuesday, extending their previous session’s losses, ahead of the resumption of indirect talks between the United States and Iran which may revive a nuclear deal that could lead to the removal of sanctions on Iranian oil sales, increasing global supplies. Oil exports from the OPEC producer could resume swiftly if a nuclear deal is reached. The deal could allow over 1 million barrels per day of Iranian oil, equal to over 1% of global supply, back onto the market. Meanwhile, the US Energy Information Administration (EIA) said in its Short Term Energy Outlook that oil production in the US will likely rise to 12 million barrels per day in 2022 and 12.6 million barrels per day in 2023, from 11.2 million barrels per day in 2021.
Benchmark crude oil futures for March delivery fell $1.96 or about 2.2 percent to settle at $89.36 a barrel on the New York Mercantile Exchange. Brent crude for April delivery dropped $2.00 or 2.16 percent to settle at $90.69 a barrel on London's Intercontinental Exchange.