Forex
Home›Forex›Major Pairs›Oil slips as US Iran talks resume, while PMI data poin…
Oil slips as US Iran talks resume, while PMI data points to slower growth
Brent crude was just below $84 per barrel after closing around $90 on Friday, as US Iran negotiations were set to restart and China manufacturing PMIs eased.
Oil prices fell sharply as markets shifted to expectations of de escalation, after US President Donald Trump confirmed that negotiations with Iran would resume on Monday, following his call off of talks tied to an attack he described as the biggest since World War II. He did not set a deadline or provide details on the location and participants, according to Action Forex.
Brent crude traded just below $84 per barrel, after ending Friday around $90 per barrel, reflecting the market reaction to the renewed diplomacy focus. Traders also looked ahead to major US and European economic releases, including the July ISM manufacturing index, final July manufacturing and services PMIs in the euro area, Swedish inflation on Thursday, and the US July jobs report on Friday.
On the growth front, China’s private RatingDog manufacturing PMI eased to a four month low of 50.9, with output and new orders rising more slowly, though new export orders returned to growth and employment increased at its fastest pace since August 2023. Action Forex said the soft reading adds to the official NBS manufacturing PMI, which unexpectedly slipped into contraction to 49.2.
In energy policy, OPEC+ approved an oil production quota increase of about 188,000 barrels per day from September, completing the rollback of a 1.65 million barrels per day cut from 2023. The outlet noted that despite multiple monthly quota hikes, the market impact has been limited by export disruptions linked to the Iran and Ukraine wars.
Latest closeWTI crude $86.80 ▲3.8%|Brent $90.12 ▲1.2%