Oil settles down after choppy session as traders follow US, Iran talks

Oil prices settled lower after a choppy session on Thursday as investors tracked developments in talks between the United States and Iran over the OPEC member's nuclear program, weighing potential supply concerns if hostilities escalate, Reuters reported.

Brent crude futures settled down 10 cents, or 0.14%, to $70.75 a barrel. WTI futures settled down 21 cents or 0.32% to $65.21.

The United States and Iran held indirect talks in Geneva on Thursday over their long-running nuclear dispute to avert a conflict after U.S. President Donald Trump ordered a military build-up in the region.

Ongoing developments surrounding those talks during Thursday's session drove whipsaw moves in crude futures.

Oil prices had gained more than a dollar a barrel after media reports indicated the talks had stalled over U.S. insistence on zero enrichment of uranium by Iran, as well as a demand for the delivery of all 60% enriched uranium to the United States.

However, prices then retreated after the two countries extended talks into next week, reducing an immediate strike potential, according to Janiv Shah, vice president of oil analytics at consultancy, Rystad Energy.

Iranian Foreign Minister Abbas Araqchi described Thursday's talks as the most serious exchanges with the United States yet, saying Iran clearly laid out its demand for lifting sanctions and the process for relief. Araqchi confirmed talks will continue next week.

Oman Foreign Minister Sayyid Badr Albusaidi earlier said significant progress was made in Thursday's talks.

"The crude selloff is simply the market removing a geopolitical risk premium," Shohruh Zukhritdinov, a Dubai-based oil trader said.

"Traders priced out the fear of tighter sanctions or disruption through Hormuz. But fundamentally nothing has changed - supply is still long, OPEC+ may add barrels in April, and Iran is front-loading exports. So this is sentiment-driven, not structural," Zukhritdinov said.

Reporting by Georgina McCartney in Houston, Shariq Khan in New York, Enes Tunagur in London, additional reporting by Shadia Nasralla, Yuka Obayashi in Tokyo and Emily Chow in Singapore Editing by Emelia Sithole-Matarise, Will Dunham, David Goodman, Nia Williams and David Gregorio