Oil falls 2.5% as supply concerns ease

Oil drilling rigs

Oil prices slumped today, April 21, amid signs of progress in talks between the US and Iran, helping to ease concerns that Washington could target Tehran's oil exports with further sanctions.

Brent crude futures for June delivery fell 2.5%, or $1.70, to settle at $66.26 a barrel. WTI crude futures for June delivery (the most active) also dropped 2.5%, or $1.60, to $63.08 a barrel.

Iran's foreign minister said in press statements that his country and the US have agreed to establish a framework for a potential nuclear agreement, following discussions that a US official described as having achieved "very good progress," Reuters reported.

"The US-Iran talks seem relatively positive, which allows for people to start thinking about the possibility of a solution," said Harry Tchilinguirian, Group Head of Research at Onyx Capital Group.

"The immediate implication would be that Iranian crude would not be off the market," Reuters quoted him as saying.

However, pressures stemming from the risk of a recession in the global and US economies due to President Donald Trump's protectionist policies continued to negatively impact oil prices, despite the continued decline in the value of the dollar.