Oil prices extend losses on expectations talks to ease Middle East supply woes

Business Recorder reported that crude futures slipped on Thursday, with Brent sliding for a fourth session and WTI for a fifth. Brent traded near $87.24 a barrel as of 0004 GMT after shedding 60 cents, or 0.7%, while WTI lost 56 cents to $81.67.

Diplomacy is underpinning the slide, as an Iranian source said Iran and Oman were nearing details of an accord governing the Strait of Hormuz. Qatar's prime minister travels to Iran later on Thursday to revive talks aimed at ending the nearly six-month-old conflict. Before the United States and Israel launched their war on Iran on February 28, the waterway handled oil and gas equal to roughly a fifth of world consumption, but flows have fallen to about a quarter of pre-war levels, per ship-tracking figures.

Obstacles persist as the sides disagree on ending the fighting, and Iran has hit vessels in the Gulf while pressing for control of the strait. Officials indicated the strait will stay shut unless Washington honours an interim ceasefire struck in June that later unravelled. Diesel is another pressure point, as war damage at Middle East refineries and Ukrainian strikes on Russian sites curb exports from a major supplier. US Energy Information Administration data showed distillate stocks, including diesel, falling 2.2 million barrels to 103.4 million in the week ending August 21, the lowest for that time of year.