Oil falls as investors focus on potential Iran-US talks in Doha

Oil prices dipped on Tuesday and were poised for a monthly decline, with investors eyeing potential US-Iran talks in Doha amid a strained interim ceasefire in the four-month-old war. Brent August crude futures, which expire on Tuesday, were down 0.9%, or 64 cents, at $72.51 a barrel as of 0356 GMT. These levels are around $20, or 22%, lower than last month’s closing. The more actively traded September contract was down 0.4%, or 31 cents, at $73.6 a barrel. US West Texas Intermediate for August fell 0.6%, or 39 cents, to $70.36 a barrel. Prices are set for around a $17 drop, or 19%, from the May 29 closing. Both Brent and WTI prices are almost back at pre-war levels on February 27. “Investors are pricing in hopes of a positive outcome from the Doha talks, even though real normalisation of flows through the Strait of Hormuz is not yet visible,” said Tim Waterer, chief market analyst at KCM Trade.