Oil prices fell slightly in Asian trade on Tuesday, reversing a measure of the prior session’s gains as traders watched for any worsening in relations between the U.S. and Iran, while anticipation of key economic reading also kept markets on their toes.

Crude prices surged over 1% in the prior session after reports showed the U.S. growing more cautious towards Iran, largely offsetting positive signals from weekend talks held between the two countries.

A drop in the dollar also aided commodity prices, although the greenback recovered marginally on Tuesday.

Brent oil futures for April fell 0.1% to $68.99 a barrel, while West Texas Intermediate crude futures fell 0.2% to $64.06 a barrel by 20:52 ET (01:52 GMT).

US issues maritime advisory over Iran
The U.S. Department of Transportation’s Maritime Administration on Monday advised U.S.-flagged vessels to stay as far away from Iranian territory as possible when passing through the Strait of Hormuz and Gulf of Oman.

The agency advised U.S.-flagged vessels to stay close to Oman during the crossing, citing risks of being boarded by Iranian forces.

The warning raised concerns over tensions between the U.S. and Iran remaining high, even as the countries marked progress during recent weekend talks and vowed to engage in more discussions over Tehran’s nuclear program.

But Iran also largely rejected calls to stop its nuclear enrichment– a major point of contention for Washington.

US, Chinese economic prints awaited
Focus this week is on economic data from the world’s largest oil consumers, with the prints expected to factor into the outlook for demand.

In the U.S, nonfarm payrolls for January are due on Wednesday, while consumer price index inflation data is due on Friday.

The prints are also expected to factor into the outlook for U.S. interest rates, especially in the face of a looming leadership change at the Federal Reserve.

In China, CPI data from the world’s largest oil importer is also due on Wednesday, with the print coming just ahead of the week-long Lunar New Year holiday.

Chinese travel and fuel demand is expected to pick up during the break.
Source: Investing.com