Crude oil prices declined sharply on Monday amid easing worries about U.S.-Iran tensions, resulting in the futures contract settling at their lowest level in about six weeks.

Higher crude inventories in the U.S. and uninterrupted crude production in the Middle East despite the tensions between the U.S. and Iran continued to weigh on oil prices.

West Texas Intermediate Crude oil futures ended down $0.96, or about 1.6%, at $58.08 a barrel, the lowest price since early December.

Brent crude futures were down by about 1.2% at $64.20 a barrel in late afternoon trades.

On Friday, WTI crude oil futures ended down $0.52, or 0.9%, at $59.04 a barrel.

With the U.S. and Iran set to sign a phase one trade deal in Washington on Wednesday, traders appeared to shrug off reports about a volley of rockets slamming into an Iraqi airbase north of Baghdad where U.S. forces have been based.

Chinese Vice Premier Liu He is scheduled to be in Washington on Wednesday. The phase one trade deal is said to include reduced tariffs on Chinese goods in exchange for increased Chinese purchases of U.S. agricultural products.

Treasury Secretary Steven Mnuchin said in an interview on Sunday that the agreement calls for China to purchase $40 to $50 billion worth of U.S. agricultural products annually.

Mnuchin described the agreement as “very, very extensive,” although the deal will not completely resolve the trade dispute between the U.S. and China.

The material has been provided by InstaForex Company –