Oil prices ease on Tuesday 

Oil prices edged lower on Tuesday after surging more than 5 per cent in the previous session, as investors remained cautious over the status of negotiations between the United States and Iran.

Brent crude futures fell 53 cents, or 0.56 per cent, to $94.45 a barrel, while US West Texas Intermediate crude declined 56 cents, or 0.61 per cent, to $91.60 a barrel.

The decline came despite comments from US President Donald Trump that talks with Iran were continuing, although Iranian media reported that Tehran had suspended indirect negotiations with Washington.

Analysts said the market remains focused on whether the two sides can make tangible progress towards a deal, as well as developments surrounding the Strait of Hormuz, a key route for global oil shipments.

Oil prices have remained volatile amid tensions in the Middle East, with Iran restricting much of the non-Iranian shipping activity through the Gulf since the conflict began. Meanwhile, US crude exports reached a record 5.6 million barrels per day in May as higher prices boosted demand from Asian and European refiners.

A preliminary Reuters poll also showed US crude inventories likely fell by about 3.6 million barrels in the week ended 29 May, extending the previous week’s decline.

Attribution: Reuters