Oil prices were heading on Tuesday for their biggest quarterly loss since the COVID-19 pandemic in early 2020, with investors eyeing potential US-Iran talks in Doha amid a strained interim ceasefire in the four-month-old war, reports Reuters.
Brent August crude futures , which expire on Tuesday, were up 0.22 per cent, or 16 cents, at $73.31 a barrel as of 1201 GMT. However, the contract was on track for a third straight monthly decline, down about 20 per cent so far in June. The more actively traded September contract gained 0.61 per cent, or 45 cents, to $74.36 a barrel.
US West Texas Intermediate for August rose 0.52 per cent, or 37 cents, to $71.12 a barrel. However, the contract was down for the second straight month, by about 19 per cent, so far in June.
Brent was down about 38 per cent so far this quarter, while US West Texas Intermediate crude had fallen about 29 per cent. Both Brent and WTI prices are close to pre-war levels.
"I wouldn't say the market has priced out a risk premium, but previously stranded ships have become available with the increase in ships moving out of the Gulf, creating a temporary wave of new supply," UBS analyst Giovanni Staunovo said.
Morgan Stanley said it now models an implied global oil market surplus of 4.8 million barrels per day in 2027.
Top US envoys who have arrived in Doha will not hold a high-level meeting with Iran, a Qatari official said on Tuesday, casting doubt on the progress of efforts to bring a lasting halt to the Iran war and fully reopen the Strait of Hormuz.
Instead, there will be technical talks this week on issues including regional security that could later be elevated to senior level, Qatar's Foreign Ministry spokesperson Majed Al Ansari told a media briefing.
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