WTI price gains ground to around $62.10 in Tuesday’s early Asian session.
Iran said nuclear talks could break down if the US insists on no enrichment.
A US credit rating cut by Moody’s and slowing retail sales in China could drag the WTI price lower.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.10 during the Asian trading hours on Tuesday. The WTI price edges higher on signs of a breakdown in US negotiations with Iran over its nuclear program, while Moody's downgrades the US national credit rating.
Deputy Foreign Minister Majid Takhtravanchi said on Monday that nuclear talks between Iran and the US "will lead nowhere" if Washington insists that Tehran drop its uranium enrichment activity to zero. On Sunday, US special envoy Steve Witkoff emphasized that any new deal between the US and Iran must include an agreement to refrain from enrichment, which might lead to the development of nuclear weapons. Iran said that its nuclear energy program has entirely peaceful purposes. Stalled nuclear talks between the US and Iran supported the WTI price.
On the other hand, Moody’s lowered the US rating from 'AAA' to ‘AA1,’ citing that successive US administrations had failed to reverse ballooning deficits and interest costs. This raised questions about the economic health of the world's largest oil-consuming nation, which might exert some selling pressure on the black gold.
Additionally, slowing retail sales in China, the top oil importer, might contribute to the WTI’s downside. Data released by the National Bureau of Statistics (NBS) showed Monday that the country’s Retail Sales rose 5.1% year-over-year in April versus 5.5% expected and 5.9% in March.
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