Oil prices fell more than 2% on Monday, reversing much of the previous week’s gains, as traders balanced hints of diplomatic progress between the United States and Iran against low trading activity over the Easter weekend.
Brent crude futures lost $1.70, or 2.5 percent, to close at $66.26 per barrel.
WTI fell $1.60, or 2.5 percent, to $63.08 a barrel.
The turnaround in tone came after news that Washington and Tehran had agreed to start developing a framework for a prospective nuclear agreement, raising the prospect of easing US restrictions on Iranian oil flows. Following the development, speculators speculated that Iranian crude will return to global markets earlier than expected.
The lengthy Easter weekend in Western markets also slowed volume fluctuations. A trading hiatus on Good Friday made Thursday the penultimate settlement day before markets reopened on Monday, leading to lower demand.