Oil prices fall 1% on Tuesday

Oil prices fell around 1 per cent on Tuesday and headed for sharp monthly losses as investors weighed uncertainty over potential US-Iran talks and concerns over weak Chinese demand.

Brent crude futures for August fell 1 per cent to $72.4 a barrel by 0653 GMT, while US West Texas Intermediate crude declined 0.8 per cent to $70.18 a barrel. Brent is set to end June about 22 per cent lower than last month’s close. WTI is on track for a monthly decline of around 19 per cent, bringing both benchmarks close to pre-conflict levels.

Market sentiment was influenced by speculation over possible talks between Washington and Tehran in Doha, despite conflicting signals from both sides. US President Donald Trump said a meeting in Doha could prove important, while Iran’s Foreign Ministry said no negotiations with the United States were scheduled in the coming days.

Analysts said investors remained cautiously optimistic about easing tensions in the Strait of Hormuz, although uncertainty persists over shipping flows. Concerns over weaker Chinese demand also weighed on prices.

Despite renewed tensions and recent attacks on shipping in the Strait of Hormuz, Middle Eastern producers have continued loading oil and liquefied natural gas cargoes, with shipping traffic last week reaching its highest level since the conflict began in February.

Attribution: Reuters