Brent crude slips to four-month low as improving supplies and US-Iran talks weigh on market sentiment
International oil prices extended their losses on Thursday, with Brent crude falling close to $70 per barrel as improving global supply conditions and progress in indirect negotiations between the United States and Iran eased concerns over potential energy disruptions.
As of 11:41 AM PST, Brent crude was trading at $70.73 per barrel, its lowest level since late February, reflecting growing confidence that oil supplies will remain adequate despite ongoing geopolitical developments.
Oil Supply Through Strait of Hormuz Improves
The latest decline in international oil prices followed a continued recovery in crude shipments through the Strait of Hormuz, one of the world’s most critical energy transit routes.
Market reports indicated that oil flows through the strategic waterway exceeded 10 million barrels per day as maritime security improved and tanker traffic returned to normal levels.
The increase in shipments has eased fears of supply disruptions that previously pushed global crude prices sharply higher.
Iranian and UAE Exports Recover
Investor sentiment also improved as oil exports from the United Arab Emirates returned to pre-conflict levels.
Meanwhile, Iranian crude exports reportedly exceeded 40 million barrels following the easing of restrictions on oil shipments, adding further supply to international markets.
Higher exports from Russia also contributed to growing seaborne crude inventories, reinforcing expectations of ample global oil supplies.
Progress in US-Iran Talks Weighs on Oil Prices
International oil prices also came under pressure amid encouraging signs of progress in indirect negotiations between the United States and Iran.
US President Donald Trump expressed optimism over the talks, while Qatar indicated that another round of negotiations could take place soon.
Despite the diplomatic progress, Iranian officials have maintained their position on retaining administrative control over the Strait of Hormuz, leaving some uncertainty over the long-term outlook.
Outlook
Analysts expect international oil prices to remain sensitive to developments in the US-Iran negotiations, global supply conditions and geopolitical events in the Middle East.
Lower crude prices could provide relief to major oil-importing countries, including Pakistan, by reducing petroleum import costs, easing inflationary pressures and improving the external account.
Market participants will continue monitoring diplomatic developments, inventory data and export trends for further direction in global oil markets.