Oil Falls for Third Day as Hormuz Flows Recover, US-Iran Talks Advance
Summary
- International oil prices fell for a third straight session on expectations of recovery in the Strait of Hormuz and progress in US-Iran talks.
- WTI traded near $68 a barrel, while Brent closed below $72 a barrel, extending a decline of about 3% over the past two sessions.
- Crude flows through the Strait of Hormuz rose above 10 million barrels a day, and the UAE has restored oil exports to prewar levels, adding to the downward pressure on oil prices.
Forecast Trend Report by Period
International oil prices fell for a third straight trading day as shipping through the Strait of Hormuz recovered and optimism grew over progress in US-Iran talks.
According to Bloomberg, West Texas Intermediate traded near $68 a barrel on July 1, while Brent settled below $72 a barrel the previous day. Crude extended its weakness after dropping about 3% over the prior two sessions.
The US government said oil shipments through the Strait of Hormuz had surpassed 10 million barrels a day. The rebound suggests Iran has limited ability to disrupt global oil supplies by closing the waterway.
President Donald Trump said indirect talks between the US and Iran were making progress.
Qatar's government said the next round of negotiations would be held as soon as possible after funeral proceedings for Iran's supreme leader, Ali Khamenei, are completed. Iran's state media said the funeral will begin on July 4 and continue for several days.
Oil has continued to decline even after posting its worst quarter since 2020. Shipments through the Strait of Hormuz have continued despite recent military clashes between the US and Iran, while the United Arab Emirates restored oil exports to prewar levels using tankers and pipelines.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.