Crude oil prices have continued to stay lower since last week, after improving US-Iran positions on the possible peace deal. This is the first time that prices have stayed below $72 a barrel for a week since the war broke out on February 28.
Although geopolitical tensions in the Middle East remain under watch, traders have gradually reduced the risk premium that had lifted crude prices during the recent Iran conflict.
Brent crude prices stayed at $72 a barrel, while the US-based West Texas Intermediate reported a further fall of 0.32 per cent to $68.47 a barrel.
A softer-than-expected US jobs report also reduced concerns over an immediate Federal Reserve interest rate hike, with a stable US dollar helping limit losses in goods markets.
Traders are closely tracking developments from the Middle East as Iran prepares to hold a state funeral for the assassinated supreme leader Ayatollah Ali Khamenei on Saturday. Tehran has once again rejected a proposal to relinquish its claims over the Strait of Hormuz in exchange for the release of frozen Iranian assets.
These relatively mixed developments coming from Washington and Tehran have kept the international community uncertain, although fears of any fresh escalations in the region have largely subsided.
Analysts noted that improving the crude flows via the Strait of Hormuz and recovering exports from Saudi Arabia have strengthened expectations of adequate near-term oil supplies. Saudi Arabia's exports have also recovered around 90 per cent of their pre-war levels, reinforcing the global supply chain.
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