Oil falls for a third straight day after US, Iran conclude talks in Doha

By Anushree Mukherjee

July 2 (Reuters) - Oil prices fell astir 2% for the 3rd consecutive time connected Thursday arsenic concerns implicit proviso disruptions eased aft Qatar said Iran and the U.S. had ‌made advancement successful talks implicit the Strait of Hormuz.

Brent futures were $1.24 oregon 1.73% little astatine $70.33 a ‌barrel astatine 1157 GMT, portion U.S. West Texas Intermediate crude fell $1.38, oregon 2.01%, to $67.20 a barrel, their lowest level since precocious February.

The talks ​made "positive progress" connected matters related to the memorandum that halted the warfare successful June, a Qatar Foreign Ministry spokesperson said successful a station connected X, though determination was nary motion the 2 sides made headway towards a lasting peace.

The adjacent gathering betwixt Iran and U.S. negotiators volition instrumentality spot aft July 9 ceremonial processions for Iran's precocious Supreme ‌Leader Ayatollah Ali Khamenei, the Qatar ministry ⁠added.

"Oil has been flowing retired of the Strait of Hormuz, portion astatine the aforesaid clip we're besides pouring lipid retired of strategical reserves. And connected apical of that, crude ⁠oil buying from China and lipid request has not truly decently revived yet," said Bjarne Schieldrop, main commodities expert astatine SEB.

"This could beryllium benignant of a dynamical representation of terms moving down sharply and past rebounding astatine immoderate point."

At slightest ​five ​supertankers carrying a full of 10 cardinal barrels of Saudi ​oil loaded from Ras Tanura person exited the ‌Strait of Hormuz, with Saudi Aramco switching to spot pricing to velocity up income successful Asia, according to commercialized sources and shipping data.

U.S. crude stocks fell to their lowest past week since 2018 arsenic home refinery request rose, portion gasoline inventories besides declined, the Energy Information Administration said connected Wednesday.

UBS chopped its Brent forecasts, citing the summation successful lipid shipping done the strait.

The slope lowered its Brent crude terms forecasts, cutting its third-quarter estimation ‌by $25 per tube to $80, reducing its forecast for the 4th fourth ​of 2026 by $10 per tube to $80, and trimming its 2027 outlook ​by $10 per tube to $75.

Analysts astatine HSBC expect the ​market "to sorb returning Middle East barrels done gradual restocking, alongside the extremity of IEA ‌strategic banal releases successful July".

"As the near-term 'mini-glut' fades, ​Brent could determination backmost towards $80/b ​or higher," the HSBC enactment said.

Meanwhile, Nigeria has go the archetypal OPEC subordinate to articulation the International Energy Agency arsenic an subordinate member, a measurement that deepens ties betwixt the planetary vigor watchdog and ​Africa's largest lipid producer.