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EMEA Oil Update: Crude Declines for 3rd Day as Peace Talks Progress

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Crude oil futures dipped for its third straight day on Thursday as supply concerns eased following the progress in US-Iran peace talks in Qatar.

The Front-month Brent futures contract fell 1.3% to $70.66 per barrel. Murban futures fell 2.5% to $64/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.

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.

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.

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