Oil prices dropped about 1% on Thursday for a third straight day after Qatar said the United States and Iran made progress in indirect talks on the Strait of Hormuz.
Brent crude futures fell 77 cents, or 1.1%, to USD 70.80 a barrel by 0256 GMT. U.S. West Texas Intermediate crude dropped 84 cents, or 1.2%, to USD 67.74 a barrel.
Both benchmarks had fallen more than 1% in the previous session and touched their lowest levels in four months.
Qatar’s Foreign Ministry said the Doha talks produced “positive progress” on issues linked to the memorandum that halted the June war. However, there was no sign that Washington and Tehran had moved closer to a lasting peace deal.
Read: US Iran Doha Talks End Without Clear Peace Breakthrough
Haitong Futures said open Strait of Hormuz flows had increased expectations of oversupply and competition for market share.
The Strait of Hormuz accounted for about one-fifth of global oil supply before the war. OPEC+ producers will likely agree to another increase in output targets at their meeting on Sunday.
UBS cut its Brent forecasts on Thursday, citing the U.S.-Iran memorandum and increased shipping through the Strait of Hormuz.
The bank now expects Brent to average USD 80 a barrel in the second half of the year. It also expects an average of USD 75 in 2027.
Qatar’s Foreign Ministry said the next U.S.-Iran meeting would take place after funeral processions for Iran’s late Supreme Leader Ayatollah Ali Khamenei on July 9.
