Shafaq News
Oil prices dipped on Tuesday and were poised for a monthlydecline, with investors eyeing potential U.S.-Iran talks in Doha amid astrained interim ceasefire in the four-month-old war.
Brent August crude futures, which expire on Tuesday, weredown 0.9%, or 64 cents, at $72.51 a barrel as of 0356 GMT. These levels arearound $20, or 22%, lower than last month's closing. The more actively tradedSeptember contract was down 0.4%, or 31 cents, at $73.6 a barrel.
U.S. West Texas Intermediate forAugust fell 0.6%, or 39 cents, to $70.36 a barrel. Prices are set for around a$17 drop, or 19%, from the May 29 closing.
Both Brent and WTI prices are almost back at pre-war levelson February 27.
"Investors are pricing in hopes of a positive outcomefrom the Doha talks, even though real normalisation of flows through the Straitof Hormuz is not yet visible," said Tim Waterer, chief market analyst atKCM Trade.
"The market is cautiously hopeful but still hedging itsbets until we see more tangible signs of de-escalation," Waterer added.
Iranian and Omani experts will start talks on redefiningtransit paths through the Strait of Hormuz in the coming days, Iranian DeputyForeign Minister Kazem Gharibabadi told state TV on Monday, adding that his country will try toobstruct vessels outside defined paths.
However, Iran's Foreign Ministry spokesperson EsmaeilBaghaei said there will not be any negotiation meetings at any level with theAmerican side in the coming days.
"The meeting in Doha is going to be perhaps important,perhaps not. We're going to find out," U.S. President Donald Trump toldreporters in the Oval Office.
The uncertainty over whether the two sides would meet highlighted the fragilityof a June 17 agreement to pause fighting that has disrupted global oil flowsthrough the Strait of Hormuz and posed a political challenge for Trump ahead ofNovember's congressional elections.
Weighing further on prices, some analysts were concernedabout demand from China.
"We waitfor more evidence of a rise in Chinese buying but cannot yet bet on a big returnto the market from the world’s largest crude importer," said SpartaCommodities head of research Neil Crosby.
Meanwhile, Middle East producers are pushing ahead with loading oil and LNGdespite fresh ship attacks in the Strait of Hormuz and renewed strikes betweenthe U.S. and Iran in recent days, shipping data showed.
Traffic last week hit its highest level since the conflictbegan at the end of February.
(REUTERS)
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