Shafaq News
Oil prices dropped about 1% onThursday, down for a third consecutive day, after Qatar said Iran and the U.S.had made progress in indirect talks focused on the Strait of Hormuz, whichhandled one-fifth of global oil supply before the war.
The discussions produced"positive progress" on issues related to the memorandum that haltedthe war in June, a Qatar Foreign Ministry spokesperson said in a post on X.
There was, however, no sign that thetwo sides had made headway towards a lasting peace.
Brent futures lost 77 cents or 1.1%to $70.80 a barrel by 0256 GMT, while U.S. West Texas Intermediate crude fell84 cents or 1.2% to $67.74 a barrel.
Both benchmarks also fell more than1% in the previous session, hitting their lowest levels in four months.
As the strait stays open and crudeoil flows out, there are growing expectations of oversupply and competitionfor market share is pushing prices down, Haitong Futures said in a note.
OPEC+ oil-producing countries willlikely agree to a further hike in their output targets from August when theymeet on Sunday, sources said on Wednesday.
UBS on Thursday cut its Brentforecasts citing the U.S.-Iran memorandum of understanding and the subsequentincrease in oil shipping through the Strait of Hormuz.
It cut its average Brent priceforecast for the September quarter by $25 and for the December quarter by$10. The bank now expects the benchmark to average $80 a barrel during thesecond half of the year and $75 in 2027.
"Despite this, we believe it ispremature to assume a full normalisation, & see price risk skewed to theupside noting that inbound tankers to the Persian Gulf have lagged outboundtankers," UBS said.
The next meeting between Iran andU.S. negotiators will take place after funeral processions for Iran's lateSupreme Leader Ayatollah Ali Khamenei on July 9, Qatar's Foreign Ministry alsosaid.
(REUTERS)
Only the headline is edited byShafaq News.