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EMEA Oil Update: Oil Prices Slip Despite Stalled US-Iran Talks

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Crude oil prices edged lower on Friday, headed for weekly loss, amid stalled US-Iran diplomatic efforts and persistent regional security threats.

Brent dropped 0.6% to $89.16 per barrel, while Murban crude futures closed at $93.03/bbl on Thursday. Both contracts were headed for a weekly loss.

"Despite the lack of a diplomatic breakthrough, crude is still heading for its first weekly loss in three weeks as flows through Hormuz continue to recover," Saxo Bank analysts said.

Market sentiment shifted following conflicting signals on the geopolitical and supply fronts.

Although crude futures had settled higher in after-hours trading on Thursday as fading prospects for renewed US-Iran talks initially boosted prices, the White House firmly clarified that the US is not negotiating with Tehran and that the blockade of Iranian ports will remain in force.

On the geopolitical front, the UK Maritime Trade Operations highlighted ongoing regional threats in its 48-hour report ending August 27, noting a confirmed security incident on Wednesday involving an oil tanker that was forced to anchor off the Omani coast.

However, persian Gulf producers are successfully ramping up exports.

Goldman Sachs estimates that crude transits through the Strait of Hormuz have recovered to roughly two-thirds of pre-war levels, now running at an estimated 6 to 8 million barrels per day, Saxo Bank analysts added.

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