Crude oil prices continue to decline amid reports that the U.S. and Iran are making progress in their peace talks.
Brent crude oil, the international standard, is down 1.30% to $70.65 U.S. a barrel on July 2. U.S. West Texas Intermediate (WTI) crude oil has declined 1.44% to trade at $67.60 U.S. a barrel.
Oil prices are on track for their fourth consecutive weekly decline amid ongoing signs that a permanent resolution to the Iran war is close at hand.
This is the first time in two years that crude prices have declined for four consecutive weeks. At the outset of the Iran war in March, oil prices had been above $110 U.S. a barrel.
The ongoing price decline comes after mediators from Qatar and Pakistan said progress has been made in meetings with U.S. and Iranian negotiators.
U.S. President Donald Trump told media on July 1 that negotiations with Iran are going well. “They’ve had very good meetings,” said Trump.
Markets are increasingly pricing in the possibility that tensions will ease if negotiations continue to make progress, reducing concerns over potential disruptions to Middle East oil supplies.
Shipping activity through the Strait of Hormuz also appears to be recovering quickly as shipowners grow more confident about returning vessels to the Persian Gulf.
Decreasing crude oil prices have sent the stocks of oil majors Chevron (NYSE: $CVX) and Shell (NYSE: $SHEL) down 10% in the past month.
