Oil prices dipped on Wednesday following US President Donald Trump's comments noting that the indirect technical talks with Iran in Qatar had gone well.
The Front-month Brent futures contract fell 1.4% at $71.92 per barrel. Murban futures fell nearly 4% to $66.29/bbl.
Both contracts lost more than 20% on a month-over-month basis as of June 30, and on a quarterly basis, the Brent futures contract has lost over 38%, while Murban has dropped more than 26%.
Speaking to reporters on Wednesday, Trump expressed strong optimism regarding the high-stakes, indirect technical talks taking place in Doha, Qatar.
While the political gridlock clouds the timeline for a permanent peace treaty, the 60-day ceasefire remains active enough to allow logistics to flow, leaving the oil market focused squarely on the growing physical oversupply, analysts have said.
"Tanker vessel movements in the Strait of Hormuz still appear limited. Total tanker crossings, which include both inbound and outbound movements, are estimated at around 11 on Tuesday, down from a peak of 24 last Wednesday," ING analysts said.
"Admittedly, there has been a slight pickup in inbound tanker traffic, suggesting that shipowners are becoming increasingly confident about moving vessels into the Persian Gulf. If this trend accelerates, it becomes a clear headwind-and potentially a direct challenge-to our view that oil prices should rise from current levels," ING added.