Oil Prices Flat as US-Iran Talks Stall and Risk Premiums Decline

Oil prices were flat on Friday but poised to end the week lower after a two-week winning streak. The price of Brent crude futures fell by 16 cents to $89.54 per barrel, while West Texas Intermediate crude futures dropped 39 cents to $83.14.

The decline comes despite a report that US President Donald Trump is not interested in returning to previous deal terms with Iran. However, the stalemate in diplomatic talks between the two countries has led to a decrease in risk premiums, according to Suvro Sarkar, head of energy research at DBS Bank.

Oil flows through the Strait of Hormuz have also been affected by the US-Iran tensions. A total of seven commodity vessels transited through the waterway on Thursday, down from 17 a day earlier and below the 10-day average of 15.