Crude benchmarks retreated Tuesday as Nymex April West Texas Intermediate dropped 63 cents to $62.12 per barrel. The March WTI contract, nearing its expiration at the end of the week, fell 66 cents to $62.23. In international markets, the ICE April Brent contract saw a steeper decline, falling $1.53 to $67.12 per barrel, while the May contract settled at $66.50.

Diplomacy Softens Geopolitical Risk

The sell-off follows statements from Iranian Foreign Minister Abbas Araghchi, who claimed that negotiations over the country's nuclear program have established a "path for a deal." While Araghchi cautioned that specific details still require resolution, he noted that an understanding on "main principles" has been secured. This shift in tone has significantly cooled the geopolitical risk premium that previously bolstered prices on fears of a U.S. military intervention.

Supply concerns are also being shaped by the upcoming OPEC+ policy meeting. Market participants are monitoring reports that the alliance may restart monthly production increases in April. While energy agencies have consistently warned that these hikes could trigger a global supply surplus, current inventory data shows that stockpiles have not yet grown as rapidly as forecasted.

Trading volume in refined products mirrored the broader market's cautious stance. The Nymex March ULSD contract slipped 1.62 cents to $2.3717 per gallon, while April RBOB futures fell nearly a cent to $2.1309. Investors are now looking toward the Energy Information Administration report, which is delayed until Thursday this week due to the U.S. Presidents Day holiday.