Oil prices were moving lower on Tuesday after Iran and the U.N. nuclear watchdog said they are extending a recently expired monitoring agreement by a month, giving negotiators in Vienna time to revive the nuclear deal from which the U.S. withdrew in 2018.
Brent crude futures for Aug settlement dipped 0.6 percent to $67.97 per barrel, with positive forecasts on recovering demand helping cap the downside. West Texas Intermediate (WTI) crude futures for July delivery were down 0.7 percent at $65.59.
Talks between Iran and world powers will continue in Vienna this week to resolve outstanding issues on a nuclear accord.
Investors are adopting a wait and watch approach to see whether new developments on a potential Iran nuclear deal would add more oil supply to the market.
Iranian President Hassan Rouhani said Monday the U.S. has no other option than to lift all sanctions on Iran, which were imposed under former U.S. President Donald Trump.