Oil Prices Decline on Removal of Iranian Export Restrictions
Oil prices inched lower on Monday as supply concerns eased after reports that restrictions on Iranian oil exports had been lifted and that the US naval blockade had been ended following talks between the United States and Iran.
The international benchmark Brent crude traded at $78.79 per barrel, down about 1.6% from the previous close of $80.05. US benchmark West Texas Intermediate (WTI) fell 0.6% to $75.39 per barrel, compared with $75.85 in the previous session.
Diplomatic contacts between the US and Iran, aimed at reaching a final agreement that would permanently reduce geopolitical tensions in the Middle East, are continuing in Switzerland under the mediation of Pakistan and Qatar.
Iranian Foreign Minister Abbas Araghchi said on X after the first round of talks that progress had been made toward ending the war in Lebanon through mediation by Pakistan and Qatar.
Araghchi announced that restrictions on Iran’s oil exports had been lifted, the US naval blockade had come to an end, and part of the country’s frozen assets had been released.
In a joint statement, the foreign ministries of Qatar and Pakistan said the first round of the four-party talks involving the two sides and the mediating countries had concluded in a positive and constructive atmosphere.
The statement also said the parties had established a communication channel to prevent misunderstandings and ensure the safe passage of commercial vessels through the Strait of Hormuz.
Meanwhile, the oil rig count in the US posted no change, according to the latest data released by oilfield services company Baker Hughes on Thursday.
The number of oil rigs, an indicator of short-term production in the country, held steady at 433 for the week ending June 18.
The weekly data was released on June 18 instead of Friday due to Juneteenth, the federal holiday on June 19 commemorating the end of slavery in the US. The number of US oil rigs decreased by 5 compared to one year ago.
The price of international benchmark Brent crude futures stood at $80.57 per barrel at Friday’s close, while American benchmark West Texas Intermediate (WTI) was at $76.51 a barrel.
