Beijing: Oil prices fell in early trading on Thursday after Qatar reported that Iran and the United States had achieved positive progress in indirect negotiations that ended on Wednesday. The discussions centered on the Strait of Hormuz, which carried one-fifth of global oil supply before the conflict.
Brent futures declined 73 cents, or 1.02 percent, to $70.84 a barrel by 0102 GMT, while U.S. West Texas Intermediate crude dropped 83 cents, or 1.21 percent, to $67.75 a barrel.
Both benchmarks had already fallen more than 1 percent in the prior session, reaching their lowest levels in four months.
Negotiators from the two countries spent two days in Doha addressing maritime traffic through the Strait of Hormuz and the release of Iranian funds. Although shipping has partially resumed, the nations exchanged strikes last weekend after an Iranian attack on a cargo vessel.
Iran seeks international recognition of its authority over the strait, possibly through force, according to two senior Iranian sources. Tehran has stated it will begin charging tolls on shipping from mid-August, once the initial toll-free period ends.
Tanker traffic has started to recover. U.S. Vice President JD Vance noted that oil flows through the waterway had returned to pre-war levels, though no specific figures were provided.
With the strait remaining open and crude continuing to flow, competition for market share is exerting downward pressure on prices, alongside rising expectations of oversupply, according to a note from Haitong Futures.
At the same time, sources indicated on Wednesday that OPEC+ producers are likely to approve another increase in output targets from August during their meeting on Sunday. The target is expected to rise by about 188,000 barrels per day, matching the adjustments made in June and July.
Separately, U.S. crude inventories fell by 3.8 million barrels to 408.4 million barrels last week, the lowest level since September 2018, the Energy Information Administration reported on Wednesday.
