Oil prices fell for a third session as geopolitical risks eased and traders sought more clarity on a US-India trade deal that might require the South Asian nation to reduce its imports of discounted Russian crude.
Brent crude traded near $66 a barrel, after April futures plunged 4.4% on Monday amid a general sell-off in commodity prices, while West Texas Intermediate crude approached $62 a barrel.
US President Donald Trump said talks with Iran on a new nuclear deal could begin within days, after Tehran indicated its willingness to engage in dialogue.
Crude oil also came under pressure as commodity markets, particularly metals, experienced heavy selling over the past two days. Gold fell by as much as 10% on Monday, while copper dropped by more than 5% at one point, continuing a correction that began on Friday. The metals recovered some of their losses on Tuesday.
Tensions with Iran are driving up prices.
The sharp drop in oil prices came after West Texas Intermediate crude posted its biggest monthly gains since 2023, supported by broad inflows into commodity markets.
The possibility of a conflict with Iran, along with limited supply disruptions, contributed to a tighter market during the first month of the year, amid expectations of a general increase in supply.
In another context, Trump said he would roll back punitive tariffs imposed on India in exchange for an agreement under which Prime Minister Narendra Modi would commit to halting purchases of Russian oil, although New Delhi has not confirmed this.
Shipments of Russian crude to Indian ports have fallen to near their lowest levels in more than three years, contributing to a growing accumulation of sanctioned and unsold barrels around the world.
Brent crude futures for April delivery fell 0.4% to $66.03 a barrel at 12:14 pm Singapore time, while West Texas Intermediate crude futures for March delivery fell 0.3% to $61.93 a barrel.
