Oil falls as markets weigh return of supply, US-Iran peace deal
Oil prices extended losses on Tuesday, as markets weighed prospects for resumption of supply through the key Strait of Hormuz against shaky physical market drivers and a lack of details from a preliminary deal to end the Iran war.
By 0436 GMT, Brent crude futures fell 25 cents, or 0.3%, to $82.92 a barrel and U.S. West Texas Intermediate inched down 9 cents, or 0.1%, to $80.66 a barrel.
On Monday, oil prices fell nearly 5% to their lowest close since March 4, after U.S. President Donald Trump said a memorandum of understanding was signed to end the U.S.-Israeli war with Iran, though full details have not been made public.
The hostilities led to the closure of the Strait of Hormuz that typically carried one-fifth of the world's oil supply before the conflict. Some analysts expect a resumption of supply soon via the Strait, with other factors weighing down physical market prices.
China's crude imports slumped 29% in May to their lowest in eight years, extending a dramatic decline for the world's importer, with its liftings of Saudi Arabia crude expected to also fall in July.
Early indications are that the U.S.-Iran deal would reopen the blockaded Strait of Hormuz and extend a ceasefire for 60 days, allowing negotiators to tackle difficult issues such as the future of Iran's nuclear programme.
On Monday, Iranian President Masoud Pezeshkian called the U.S.-Iran pact an 'important step' toward stopping the fighting but cautioned a final agreement for a lasting truce 'has yet to take shape'.
But with full details yet to emerge and a permanent truce still to be reached, overall price weakness is limited.
On Monday, a senior Iranian official said Iran would freeze its nuclear activity until a final agreement, and refrain from further uranium enrichment or expansion of nuclear facilities.
Reuters
Oil prices extended losses on Tuesday, as markets weighed prospects for resumption of supply through the key Strait of Hormuz against shaky physical market drivers and a lack of details from a preliminary deal to end the Iran war.
By 0436 GMT, Brent crude futures fell 25 cents, or 0.3%, to $82.92 a barrel and U.S. West Texas Intermediate inched down 9 cents, or 0.1%, to $80.66 a barrel.
On Monday, oil prices fell nearly 5% to their lowest close since March 4, after U.S. President Donald Trump said a memorandum of understanding was signed to end the U.S.-Israeli war with Iran, though full details have not been made public.
The hostilities led to the closure of the Strait of Hormuz that typically carried one-fifth of the world's oil supply before the conflict. Some analysts expect a resumption of supply soon via the Strait, with other factors weighing down physical market prices.
China's crude imports slumped 29% in May to their lowest in eight years, extending a dramatic decline for the world's importer, with its liftings of Saudi Arabia crude expected to also fall in July.
Early indications are that the U.S.-Iran deal would reopen the blockaded Strait of Hormuz and extend a ceasefire for 60 days, allowing negotiators to tackle difficult issues such as the future of Iran's nuclear programme.
On Monday, Iranian President Masoud Pezeshkian called the U.S.-Iran pact an 'important step' toward stopping the fighting but cautioned a final agreement for a lasting truce 'has yet to take shape'.
But with full details yet to emerge and a permanent truce still to be reached, overall price weakness is limited.
On Monday, a senior Iranian official said Iran would freeze its nuclear activity until a final agreement, and refrain from further uranium enrichment or expansion of nuclear facilities.
Reuters
Oil prices extended losses on Tuesday, as markets weighed prospects for resumption of supply through the key Strait of Hormuz against shaky physical market drivers and a lack of details from a preliminary deal to end the Iran war.
By 0436 GMT, Brent crude futures fell 25 cents, or 0.3%, to $82.92 a barrel and U.S. West Texas Intermediate inched down 9 cents, or 0.1%, to $80.66 a barrel.
On Monday, oil prices fell nearly 5% to their lowest close since March 4, after U.S. President Donald Trump said a memorandum of understanding was signed to end the U.S.-Israeli war with Iran, though full details have not been made public.
The hostilities led to the closure of the Strait of Hormuz that typically carried one-fifth of the world's oil supply before the conflict. Some analysts expect a resumption of supply soon via the Strait, with other factors weighing down physical market prices.
China's crude imports slumped 29% in May to their lowest in eight years, extending a dramatic decline for the world's importer, with its liftings of Saudi Arabia crude expected to also fall in July.
Early indications are that the U.S.-Iran deal would reopen the blockaded Strait of Hormuz and extend a ceasefire for 60 days, allowing negotiators to tackle difficult issues such as the future of Iran's nuclear programme.
On Monday, Iranian President Masoud Pezeshkian called the U.S.-Iran pact an 'important step' toward stopping the fighting but cautioned a final agreement for a lasting truce 'has yet to take shape'.
But with full details yet to emerge and a permanent truce still to be reached, overall price weakness is limited.
On Monday, a senior Iranian official said Iran would freeze its nuclear activity until a final agreement, and refrain from further uranium enrichment or expansion of nuclear facilities.
Reuters
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Oil falls as markets weigh return of supply, US-Iran peace deal
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