2021.05.1819:21:00UTC+00Oil Futures Settle Notably Lower

Crude oil futures settled lower on Tuesday, weighed down by reports saying there are signs of progress in the Iran nuclear talks.

Traders were also weighing global energy demand prospects amid the continued surge in coronavirus cases in Asian countries, including India, Japan and China.

Expectations of increased gasoline demand in the U.S. helped limit oil's downside.

West Texas Intermediate Crude oil futures for June ended lower by $0.78 or about 1.2% at $65.49 a barrel.

Brent crude futures were down $0.72 or 1.02% at $68.74 a barrel a little while ago.

According to reports, Russian ambassador to the UN Mikhail Ulyanov is quoted as saying that significant progress had been made in talks between the U.S. and Iran with regard to reviving a deal restricting Iran's nuclear weapons development.

Meanwhile, New York State will no longer require masks in most public spaces for people fully vaccinated against COVID-19. New Jersey is also fully lifting its pandemic-related travel restrictions and quarantine requirements.

In Europe, Germany has decided to allow vaccinated travelers or people who have recovered from the virus to skip testing and quarantine, while the French government is set to go ahead with its plans to almost completely end coronavirus restrictions by June 30.

Traders also looked ahead to weekly inventory reports from the American Petroleum Institute (API) and Energy Information Administration (EIA). While API's report is due later today, the EIA will release its inventory data Wednesday morning.