Ammon News - Oil prices barely moved on Tuesday as traders weighed the impact on supply from a possible breakdown in U.S.-Iran talks on Tehran's nuclear programme, strong front-month physical demand in Asia and a cautious outlook for China's macroeconomy.

Brent futures dipped 6 cents to $65.48 a barrel by 0305 GMT. U.S. West Texas Intermediate crude futures gained 1 cent to $62.7.

Discussions on Iran's nuclear programme would "lead nowhere" if Washington insisted that Tehran slash uranium enrichment activity entirely, state media quoted Deputy Foreign Minister Majid Takhtravanchi as saying on Monday.

The remarks came after U.S. special envoy Steve Witkoff reiterated on Sunday that Washington would require any new deal to include a pact to refrain from enrichment, a precursor to the development of nuclear bombs.

However, a U.S. sovereign downgrade by Moody's dampened the economic outlook for the world's biggest energy consumer, pinning back oil prices.

The ratings agency cut the U.S. sovereign credit rating by one notch on Friday, citing concerns about its growing debt of $36 trillion. Reuters