But Iran is front-loading exports incase of attack anyway: File Image/Pixabay

Oil prices on Thursday were flat, after nuclear talks between the U.S. and Iran caused tumultuous trading first on rumours that the talks had stalled, and then after the two countries agreed to meet yet again next week – thus presumably avoiding an immediate strike against the Islamic republic.

Brent settled down 10 cents to $70.75 per barrel, and West Texas Intermediate settled down 21 cents to $65.21.

Shohruh Zukhritdinov, a Dubai-based oil trader, said, "The crude selloff is simply the market removing a geopolitical risk premium…… fundamentally nothing has changed: supply is still long, OPEC+ may add barrels in April, and Iran is front-loading exports."

Iran has rapidly been loading oil onto tankers in recent days, a sign of preparations in case of an attack; as for the Organization of the Petroleum Exporting Countries, sources told media it will consider raising its oil output by 137,000 barrels per day (bpd) for April to end a three-month suspension of increases, in order to prepare for peak summer demand.

Samantha Hartke, head of market analysis for the Americas at Vortexa Ltd., said of talk about supply disruptions resulting from geopolitical tensions, "So long as we remain in this realm of uncertainty, oil prices are more prone to upside risk on any headlines out of the US-Iran talks.

"Our view is that a prolonged disruption is unlikely given the onerous effect that will have on Iranian trade flows and revenues."

In other oil news on Thursday, the U.S. Bureau of Ocean Energy Management announced it will prepare an environmental impact statement for potential oil and gas lease sales in the Northern, Central, and Southern California program areas; this covers roughly 11,876 lease blocks spanning about 65 million acres of the Pacific Outer Continental Shelf.

Julianne Geiger, researcher of Oilprice.com, pointed out that while the immediate impact is merely procedural, strategically the initiative is important because "California currently imports the majority of its crude oil from Iraq, Saudi Arabia, Ecuador, and Brazil; if even a part of this offshore acreage proves viable, it could marginally offset imports and stabilize in-state refinery supply."