Oil Extends Slide Amid Ample Supply

(RTTNews) - Oil prices traded lower for a third consecutive session on Thursday, with Brent crude and WTI reaching their lowest levels in four months, on signs of improved traffic through the Strait of Hormuz.

Following the interim peace agreement between Washington and Tehran, Saudi Aramco has ramped up crude exports from the Ras Tanura terminal and shifted to spot pricing for some sales to Asian buyers, media reports suggest.

Reuters reported, citing sources that the Organization of Petroleum Exporting Countries are planning to increase their output targets by about 188,000 barrels per day from August, adding to pressure on global supply.

Brent crude futures fell 1.4 percent to $70.60 a barrel, reaching their lowest level in late February amid easing risks to Middle East crude supplies. WTI crude futures were down 1.5 percent at $67.53.

An average of 10 million barrels of crude oil is now moving through the Strait of Hormuz with American military support, a U.S. official said.

The United States and Iran concluded a round of indirect talks on Wednesday without clear progress toward a lasting peace.

While U.S. President Donald Trump touted progress towards 'denuclearization', Iran's Deputy Foreign Minister Kazem Gharibabadi said the countries had agreed to establish a communication channel to report and record violations of their initial MoU.

Qatar said that the next round of talks will be held at the earlier possible time following the funeral procession of Iran's former Supreme Leader Ali Khamenei.

UBS has cut its 2026-27 Brent crude price forecast to $84 a barrel this year, down $9 a barrel from earlier, citing rising energy shipments through the Strait of Hormuz.