US Energy Secretary Chris Wright pumps gas at a Texas service station. [Reuters]
US Energy Secretary Chris Wright pumps gas at a Texas service station. [Reuters]

Oil prices fell for a fourth consecutive day Wednesday, dropping to their lowest levels since before the outbreak of the US-Iran war in February, as the two countries continued follow-up negotiations.

Brent crude futures for August delivery settled at $73.74 a barrel on the ICE Futures Exchange, down 4.33 percent from the previous session. West Texas Intermediate crude for August delivery closed at $70.34 a barrel on the New York Mercantile Exchange, a decline of 3.92 percent. Both benchmarks fell to their lowest levels since Feb. 27, before the US-Iran war began.

Prices have been under sustained downward pressure since the United States and Iran concluded a high-level meeting June 21 and agreed to continue working-group negotiations, marking some diplomatic progress. Selling accelerated on expectations that oil supply chains would recover after Iran agreed to allow free passage through the Strait of Hormuz for the 60-day duration of formal negotiations, and the US Treasury permitted Iran to resume crude oil sales.

Shipping data showed that three oil tankers carrying a combined 5 million barrels of crude had passed through the Strait of Hormuz since the talks began, with two of the vessels heading to Asia.

"The broader scenario of Iranian oil re-entering global markets and the Strait of Hormuz situation normalizing is being priced in," said Tim Waterer, chief market analyst at KCM Trade.


kate01@heraldcorp.com