Oil prices extend losses on expectations talks to ease Middle East supply woes
Crude fell for a fifth day as traders bet talks could reopen the Strait of Hormuz, while U.S. data showed distillate stockpiles dropped 2.2 million barrels.
- Oil prices fell on Thursday as expectations that talks between Iran and Qatar may open the Strait of Hormuz reduced supply disruption fears from the Middle East war. Brent crude futures dropped 0.7% to $87.24 a barrel.
- Iran and Oman are finalizing details of an agreement to control the Strait of Hormuz after Iran's Revolutionary Guards agreed how to share the waterway connecting major Gulf oil producers to markets. A senior Iranian source disclosed this on Wednesday.
- The Energy Information Administration reported Wednesday that distillate stockpiles, including diesel and heating oil, dropped 2.2 million barrels in the week to Aug 21 to 103.4 million barrels. West Texas Intermediate crude fell 0.7% to $81.67.
- Daniel Hynes, senior commodity strategist at ANZ, said, "Crude oil edged lower as the prospect of the Strait of Hormuz reopening improved amid ongoing talks," though he cautioned "concerns over shortages in the oil market persist."
- Prolonged uncertainty remains because the core dispute over Iran's nuclear program is unlikely to be resolved quickly, said Priyanka Sachdeva, head of market insights at Phillip Nova. A "war premium" continues pricing into oil.
12 Articles
12 Articles
Oil Prices Fall as Qatar Pushes New Hormuz Talks
Crude oil prices extended their decline for the fourth day today on news that Qatar’s Prime Minister will visit Tehran today to discuss the possibility of reopening the Strait of Hormuz. At the time of writing, Brent crude was trading at $87.46 per barrel, with West Texas Intermediate at $81.83 per barrel, despite a new report about a strike on a tanker in Hormuz. No details about the visit by Sheikh Mohammed bin Abdulrahman al-Thani to Tehran w…
Channel News Asia
Oil prices extend losses on expectations talks to ease Middle East supply woes
Aug 27 : Oil prices fell on Thursday, extending a streak of multiple days of losses, on expectations talks between Iran and Qatar may open the key Strait of Hormuz and reduce supply disruptions from the Middle East war. Brent crude futures were down 60 cents, or 0.7 per cent, to $87.24 a barrel by 0004 GMT,
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