Oil prices fall after progress in talks between Washington and Tehran

Oil prices are falling today, which analysts attribute to progress in talks between the United States and Iran that has eased concerns about future supplies. Qatar is mediating the talks, and meetings there are going well, according to US President Donald Trump.

At around 16:55 CEST, the price of North Sea Brent crude was down 2,2 percent to below 71,40 dollars a barrel. US light crude WTI was down 1,7 percent at the same time, trading for less than 68,30 USD a barrel.

"The talks in Qatar are being viewed favorably, allowing prices to fall further," said Ole Hansen, an analyst at financial institution Saxo Bank.

"It is possible that we will see even lower prices," he added.

The talks between the US and Iran in Qatar are technical. Their aim is to reach agreement on shipping through the Strait of Hormuz and secure a lasting ceasefire, an Iranian official and a source with direct knowledge of the talks told Reuters.

Brent crude fell by around USD 45 a barrel in the second quarter. This was its biggest quarterly decline since the global financial crisis in 2008. WTI fell by USD 31, its biggest quarterly decline since 2020, when the COVID-19 pandemic sharply reduced oil demand. The drop was driven by progress in talks aimed at ending the conflict in the Middle East, following a sharp rise in prices in March caused by the conflict itself.

Members of the OPEC+ group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, are due to meet on Sunday. The group is likely to agree to increase production by 188.000 barrels a day from August, the same amount as in June and July, according to sources.

The US government’s Energy Information Administration (EIA) said today that US oil inventories fell by 3,8 million to 408,4 million barrels last week, their lowest level since September 2018. Analysts polled by Reuters had expected a decline of 4,5 million barrels.

Oil prices in dollars per barrel (about 159 liters):