Brent Price at Three-Week Lows Amid Ongoing US-Iran Talks

Oil prices have been volatile this week due to ongoing US-Iran talks and potential risks of a repricing if negotiations fail.

The West Texas Intermediate (WTI) opened Thursday's session down $0.53, or 0.7%, at $74.69 a barrel before rebounding to print $76.13 on the September contract by mid-morning in New York, up $0.91 or 1.21%.

Brent settled slightly higher on Wednesday while WTI edged lower, a divergence that indicates pressure is on the US benchmark while the international grade holds a geopolitical premium.

The market has priced a near-complete resolution of the five-month supply shock, unwinding every dollar of the July escalation premium.

A collapse in the framework would not be priced in at $79.08 Brent, with potential downside ranging from $4 to $6 and upside potentially exceeding $10 due to the spent peace premium.