Crude oil prices fell for a second straight session amid expectations that US-Iran peace talks may resume, potentially easing supply concerns from the Middle East.
Brent crude futures fell 0.37% to $94.44 a barrel, after declining 4.6% in the previous session. US West Texas Intermediate crude dropped 1.04% to $90.33, following a 7.9% fall in the previous session.
US President Donald Trump told the New York Post that the talks to end the war with Iran could resume in Pakistan over the next two days. This statement increased optimism that talks could eventually resolve the conflict and reopen crude oil and fuel flows.
Earlier, the US-Iran talks collapsed over the weekend, prompting Washington to impose a blockade on Iranian ports.
Despite a two-week ceasefire, transit through the Strait of Hormuz remains uncertain, with traffic at only a fraction of the 130 or so vessels that moved through the waterway before the war, Reuters reported, quoting sources.
US Inventory
Market participants will also watch out for official US inventory data from the Energy Information Administration due later today.
According to a Reuters poll, US crude oil stockpiles were expected to have risen slightly last week, while distillate and gasoline inventories likely fell.
(With inputs from Agencies)
