Oil Prices Little Changed on Tuesday

PUKMEDIA

Oil field.

Oil prices barely moved on Tuesday, 20 May 2025, as traders weighed the impact on supply from a possible breakdown in U.S.-Iran talks on Tehran's nuclear programme, strong front-month physical demand in Asia and a cautious outlook for China's macroeconomy.

Brent futures dipped 6 cents to $65.48 a barrel by 0305 GMT. U.S. West Texas Intermediate crude futures gained 1 cent to $62.7, according to Reuters report.

Discussions on Iran's nuclear programme would "lead nowhere" if Washington insisted that Tehran slash uranium enrichment activity entirely, state media quoted Deputy Foreign Minister Majid Takhtravanchi as saying on Monday.

The remarks came after U.S. special envoy Steve Witkoff reiterated on Sunday that Washington would require any new deal to include a pact to refrain from enrichment, a precursor to the development of nuclear bombs.

Prices were also supported by expectations of near-term firm physical demand, amid healthy refining margins in Asia.

"The Asian buying cycle got off to a very mild start, but strong margins and the end of maintenance should still prove supportive," Reuters quoted Sparta Commodities' analyst Neil Crosby as saying.

Singapore complex refining margins, a regional bellwether, hovered at more than $6 a barrel on average for May, LSEG data showed, up from April's average of $4.4 a barrel. However, a U.S. sovereign downgrade by Moody's dampened the economic outlook for the world's biggest energy consumer, pinning back oil prices.



PUKMEDIA