Oil prices moved lower on Thursday as traders assessed the latest developments in U.S.-Iran negotiations.
Optimism that diplomacy could improve global supply conditions placed pressure on crude prices. However, continued geopolitical uncertainty prevented a sharper decline.
Brent and WTI Crude Trade Lower
At 08:01 ET, or 12:01 GMT, Brent crude futures fell 1.7% to $70.38 per barrel.
U.S. West Texas Intermediate crude futures also declined, dropping 1.9% to $67.25 per barrel.
Brent serves as the main global oil benchmark, while WTI is the leading benchmark for U.S. crude prices.
U.S.-Iran Talks Make Limited Progress
Investors were evaluating the outcome of indirect negotiations between the United States and Iran in Doha.
The two sides completed two days of technical discussions without reaching a breakthrough on a lasting peace agreement.
Nevertheless, Qatar said the talks had produced positive progress. Both sides also agreed to continue negotiations, keeping hopes for a diplomatic resolution alive.
The discussions focused on shipping through the Strait of Hormuz and other measures designed to build trust between the two countries.
Strait of Hormuz Risks Remain
Tensions have eased following a recent increase in fighting. Even so, oil traders continue to monitor the situation closely.
Any disruption to crude shipments through the Strait of Hormuz could threaten global energy supplies and cause renewed volatility in oil prices.
The waterway remains one of the world’s most important routes for oil exports.
Record U.S. Production Pressures Oil Prices
Abundant supplies also weighed on the crude market.
Data from the U.S. Energy Information Administration showed that American oil production reached a record 13.93 million barrels per day in April.
The increase reinforced expectations that global oil supplies remain strong despite continued uncertainty in the Middle East.
ANZ Sees Resilient Commodity Demand
ANZ said easing geopolitical tensions had reduced concerns about possible supply disruptions.
However, the bank noted that uncertainty across the Middle East continued to provide some support for oil prices.
ANZ’s China Commodity Index increased by 0.5%, while its energy component also rose by 0.5%.
The gains indicated that underlying commodity demand remained resilient despite the recent decline in crude prices.
OPEC+ Output Plans Add to Supply Concerns
Markets are also considering the possibility that OPEC+ could increase oil production again in August.
Another output increase would add more supply to the market and could place further downward pressure on Brent and WTI prices.
Investors will therefore continue to monitor U.S.-Iran negotiations, shipping conditions in the Strait of Hormuz and future OPEC+ production decisions.
