Oil prices continued to fall in Asian trade today, holding near their lowest levels since early March amid signs of a gradual recovery in shipping through the Strait of Hormuz following progress in talks between the United States and Iran, Reuters reported, BTA reported.
Brent crude oil futures fell 78 cents, or 0.73 percent, to $76.52 a barrel by 08:00 Bulgarian time. US light crude oil fell 74 cents, or 0.54 percent, to $72.67 a barrel. Both major crudes ended the session down about 1 percent, hitting their lowest levels since early March. ING analysts said the rising number of ships passing through the Strait of Hormuz supported expectations of a normalization of supplies from the region, although traffic still remained below pre-conflict levels. Washington's decision to grant Tehran a 60-day exemption from some sanctions after initial peace talks, as well as the easing of hostilities in Lebanon, are further weighing on prices. "Hopes of a reduction in US-Iran tensions and the restoration of oil flows through the Strait of Hormuz continue to weigh on the market," said Tomomichi Akuta of “Mitsubishi UFJ Research and Consulting“ (Mitsubishi UFJ Research and Consulting).
He said further progress in nuclear talks could return oil prices to pre-conflict levels.
However, uncertainty about the durability of the agreements remains high. US President Donald Trump said Iran had accepted indefinite nuclear inspections, while Tehran denied making such a commitment.
Meanwhile, ship tracking data showed that three supertankers, previously blocked in the area, passed through the Strait of Hormuz on Tuesday. According to the International Maritime Organization, a plan is being prepared to evacuate hundreds of ships and about 11,000 sailors still in the Persian Gulf.
Against this backdrop, the American Petroleum Institute (API) reported a decline in U.S. crude oil inventories of 765,000 barrels in the week to June 19. Analysts polled by Reuters had expected an average decline of about 4.5 million barrels.