WTI Crude Oil Holds Gains on Geopolitical Tensions Despite Economic Drag

Light crude oil futures, or WTI, settled higher at $62.69 per barrel on Monday, gaining 20 cents, or 0.32%, as stalled nuclear talks between the U.S. and Iran supported prices. Iranian officials stated that negotiations will falter unless the U.S. drops demands regarding uranium enrichment, effectively dimming the chances of sanctions being lifted. That makes a near-term boost in Iranian crude exports -- previously estimated at 300,000 to 400,000 barrels per day -- unlikely.

However, upside in WTI was restrained by broader macro concerns, including a downgrade of the U.S. sovereign credit rating by Moody's and weak Chinese economic data. Disappointing industrial output and retail sales figures from China added to demand-side concerns for the world's top oil importer.