Brent and WTI crude futures decline nearly 2% after progress in Doha talks reduces concerns over Strait of Hormuz disruptions.
Oil prices extended losses for a third day, with Brent crude falling $1.24 to $70.33 a barrel and WTI dropping $1.38 to $67.20. The decline followed reports of progress in US-Iran talks in Doha, easing fears of supply disruptions in the Strait of Hormuz.
The talks, described as making “positive progress” by Qatar’s Foreign Ministry, focused on a memorandum halting hostilities in June. No breakthrough on lasting peace was announced, but the next meeting is scheduled after July 9. Analysts noted persistent oversupply, with 10 million barrels of Saudi oil recently exiting the strait and weak demand from China.
Market sentiment was further pressured by ongoing releases from strategic reserves and Saudi Aramco’s shift to spot pricing for Asian sales, accelerating supply to the region.