-- Brent futures contract firmed on Thursday as traders weighed fresh diplomatic signals against tight global supplies.
The Brent futures contract gained 0.6% to $95.50 per barrel. Murban closed at $100.85 on April 15 and was not trading as of the time of publishing this oil price update.
While a US led blockade continues to suppress shipping through the Strait of Hormuz, news of an impending second round of peace talks has helped temper recent price volatility, analysts said.
"Oil has steadied, with Brent holding near $95 on signs the US and Iran may extend a ceasefire and restart talks aimed at ending a war that has choked global supplies of key commodities from the Persian Gulf," Saxo bank analysts said.
Iran has reportedly offered to allow commercial vessels safe passage through Omani waters within the Strait of Hormuz, provided a broader agreement is reached to prevent further military escalation.
Shipping through the Strait of Hormuz remained well below historical averages, as an effective US-Iran blockade continued to disrupt vessel movements in the strategic waterway, according to a Bloomberg analysis on Wednesday.
"The key upside risk for the market is that peace talks between the US and Iran break down. This isn't an unrealistic scenario, given that US and Iranian demands remain fairly wide apart," ING analysts said.
On the supply side, US crude stockpiles fell by 900,000 barrels to 463.8 million bbls in the week ended Apr. 10, the Energy Information Administration said in its weekly report on Wednesday.