Oil prices are steadying at around $91 a barrel as investors focus their attention on negotiations with Iran over the nuclear deal, which are due to resume on Tuesday, Bloomberg reports.
European Brent crude fell 0.24 percent, or $0.22, to $92.47 a barrel.
U.S. benchmark West Texas Intermediate (WTI) also fell 0.16 percent, or $0.15, to $91.17 a barrel. On Monday, futures fell 1.1 percent as the rally that pushed oil prices to a seven-year high eased.
Some signals on talks between Washington and Tehran brought optimism among investors that the two sides were nearing an agreement that would lead to a resumption of crude exports by the Gulf producer.
However, the US gasoline market could tighten further after the country’s second-largest refinery unexpectedly shut along with other Gulf refineries. This could mean a further rise in the price of fuel after it rose to its highest level last week.
The oil market has tightened this year following strong demand and a series of supply disruptions. Black gold is thus approaching USD 100 a barrel amid growing inflationary concerns. The Organisation of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, are struggling to meet agreed supply increases, while Saudi Arabia has shown optimism about demand prospects by raising prices for March.
There are also geopolitical risks as Russia masses troops near the Ukraine border. Russian President Vladimir Putin has said there are no plans for an invasion. U.S. President Joe Biden indicated on Monday that the Nord Stream 2 natural gas transmission between Russia and Germany would be halted if there is an invasion.