Oil Prices Steady Amid Caution Over Iran-Oman Talks
Oil prices remained steady on Thursday as investors remained cautious over potential talks between Iran and Oman to restore oil flows through the Strait of Hormuz.
The Strait, which handles about one-fifth of global daily oil supplies, has been a source of tension since the US-Iran conflict began in late February.
Iran's Foreign Ministry spokesperson Esmaeil Baghaei said that Iran and Oman have reached an understanding on the geographic coordinates for a shipping route through the Strait, but this deal is contingent upon certain third parties not interfering.
Tim Waterer, chief market analyst at KCM Trade, warned that traders are still anxious about the fragility of any new agreement after a short-lived Memorandum of Understanding signed in June.
Waterer added that until there are sustained and verifiable increases in oil volumes, the market will continue to price in supply risk.