Oil Prices Decline on Hopes for Middle East Talks
Oil prices continued their downward trend on Thursday as hopes for Middle East talks to ease supply disruptions rose. Brent crude futures declined by 0.5% to $87.43 a barrel, while West Texas Intermediate crude futures fell by 0.5% to $81.86 a barrel.
The prospect of the Strait of Hormuz reopening improved amid ongoing talks between Iran and Qatar, said Daniel Hynes, senior commodity strategist at ANZ. However, concerns over shortages in the oil market persist.
The strait, which connects major Gulf oil producers to markets, carried oil and natural gas shipments equal to about one-fifth of global consumption before the US-Israeli war on Iran started on February 28. Since then, oil flows have dropped to about one-quarter of their pre-war level.
The US has halted its attacks on Iran for about a month and is seeking to impose greater economic pressure on Iran, raising investors' expectations for an easing of Gulf supply disruptions.