Crude oil prices fell back to pre-war levels on Thursday after the conclusion of US-Iran peace talks in Qatar, with both sides seeking to maintain peace in the Strait of Hormuz. Brent crude prices fell back to $70 per barrel, while the other US-based West Texas Intermediate fell 0.85 per cent to $68.00 a barrel.
Brent Oil Futures for August delivery had yet to begin trading. Senior US officials said that negotiations with Iran were progressing well, although discussions are in the early stages. This reduced fears of immediate escalation that could disrupt crude exports from the Gulf.
Meanwhile, crude shipments through the Strait of Hormuz climbed to 10 million barrels per day amid the positive developments.
Growing confidence that Gulf exports will remain uninterrupted continued to weigh on prices, the traffic flow in the critical waterway has recovered steadily in recent weeks, while workarounds have helped restore exports from major regional producers.
The US Energy Information Administration data on Thursday showed domestic crude production and supply touched a record 13.93 million barrels per day in April, reinforcing expectations of abundant global supplies.
According to investment firms, improving traffic and positive developments in the US-Iran peace talks have eased supply concerns, despite uncertainty still looming over the fate of the ongoing negotiations, as seen earlier.
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