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EMEA Oil Update: Brent Slides for 3rd Day After Signs of Progress in US-Iran Talks

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Oil prices fell more than 1% on Thursday, marking a three-day decline, following news of progress in indirect talks between US and Iran regarding the crucial Strait of Hormuz shipping route, alongside signs of recovering global supplies.

The Front-month Brent futures contract fell 1.5% to $70.48 per barrel. Murban futures fell 1.9% to $64.37/bbl.

According to a Qatar Foreign Ministry spokesperson on social media X, the talks have yielded positive steps forward regarding the June peace agreement.

Saxo Bank analysts said "Brent extended its slide towards [$]70 and pre-war levels as flows through the Strait of Hormuz continued to recover, while signs of progress in indirect US-Iran talks further eased supply concerns."

The UAE restored crude and condensate exports to near pre-war levels in June by using a pipeline that bypasses the Strait of Hormuz and routing some tankers on "dark" voyages with transponders switched off, Bloomberg reported Wednesday.

Adding to the downward pressure on prices, OPEC+ nations are expected to increase their oil production targets starting in August when they meet this coming Sunday, Reuters reported citing sources.

On the supply side, US commercial crude oil inventories decreased by 3.8 million barrels to 408.4 mmbbls in the week ended June 26, the Energy Information Administration said in its weekly report on Wednesday.

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