Oil Extends Declines After Steep Losses in Previous Two Sessions

Oil extends declines after steep losses in previous two sessions

SINGAPORE: Oil extended declines on Wednesday after steep falls in the previous two trading sessions.Brent crude futures dropped 92 cents, or about 1.2 percent, to $78.44 a barrel by 0330 GMT. They have tumbled more than 12 percent for the week thus far.US West Texas ​Intermediate futures lost $1.07, or 1.4 percent, to stand at $74.70 a barrel and are down ​more than 11 percent this week.

Oil’s three-day slide exposes a dangerous flaw in the market’s Hormuz optimism

Oil extended its decline for a third session on Wednesday as traders increased bets that diplomacy would reopen the Strait of Hormuz.Brent crude fell 1.2% to $78.44 a barrel by 3.30am GMT, while West Texas Intermediate dropped 1.4% to $74.70. Both benchmarks had settled more than 5% lower on Tuesday at three-week lows.The retreat has a rational foundation, as Qatar says mediators are making progress, while US officials believe an agreement could…