Oil slips as improving U.S.-Iran dialogue eases supply concerns

Oil prices traded lower on Thursday as optimism surrounding indirect negotiations between the United States and Iran improved the outlook for global crude supplies, offsetting ongoing geopolitical risks in the Middle East.

At 08:20 GMT, Brent crude futures fell 0.7% to $71.10 per barrel, while U.S. West Texas Intermediate (WTI) crude declined 0.7% to $68.12 per barrel.

Iran negotiations remain in focus

Investors continued to monitor the latest round of indirect talks between Washington and Tehran in Doha.

Although negotiators concluded two days of technical discussions without reaching a comprehensive agreement, Qatari officials said the meetings had delivered positive progress and confirmed that both sides had agreed to continue negotiations.

The discussions focused largely on maritime security in the Strait of Hormuz and additional confidence-building measures, keeping hopes alive that diplomatic efforts could reduce regional tensions.

Hormuz flows support confidence

Despite continued geopolitical uncertainty, crude exports through the Strait of Hormuz remained robust.

Daily shipments exceeded 10 million barrels, reinforcing confidence that the region’s key export route continues to operate normally despite recent instability.

Nevertheless, traders remain alert to any developments that could disrupt oil flows through one of the world’s most important shipping corridors.

Record U.S. production weighs on prices

On the supply side, fresh figures from the U.S. Energy Information Administration showed domestic crude production reached a record 13.93 million barrels per day in April.

The data reinforced expectations of plentiful global supplies, limiting the upside for oil prices.

ANZ said easing geopolitical tensions have reduced supply concerns, although uncertainty in the Middle East continues to provide some support to the market.

The bank also highlighted a 0.5% increase in its China Commodity Index, including a similar rise in its energy component, suggesting underlying demand remains resilient.

OPEC+ and inventories could drive the next move

Investors are now awaiting additional catalysts, including a possible production increase by OPEC+ in August, fresh U.S. crude inventory figures and further developments in U.S.-Iran negotiations.

These factors are expected to determine the near-term direction of oil markets.