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06.02.202606:33:52UTC+00Brent Reverses Early Losses

On Friday, Brent crude oil futures experienced a rise of over 1%, climbing above $68 per barrel, as earlier losses were reversed. This change came amid uncertainties in the progress of high-stakes US-Iran discussions due to disagreements over the meeting's agenda. The United States seeks a comprehensive dialogue that encompasses Iran's ballistic missile program and regional activities, whereas Iran is firm on limiting the discussions to nuclear matters and sanctions relief.

Compounding these concerns, the US Virtual Embassy in Iran has advised American citizens to depart immediately. Similar warnings were issued last month, notably when discussions of potential military actions by President Trump involving Iran led to significant apprehension in energy markets regarding possible disruptions in the supply from the OPEC member.

In a related development, Saudi Arabia has reduced prices for its primary crude grade sold to Asia, reaching the lowest point since late 2020. This move indicates a situation of oversupply; however, the smaller-than-anticipated cut also reflects a level of confidence in demand. Nonetheless, oil is on track for its first weekly decline in six weeks.

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