LONDON: Oil prices were little changed on Friday and remained largely steady for the week as traders continued to monitor efforts to secure a peace agreement between the United States and Iran.
Brent crude futures slipped 8 cents, or 0.11 percent, to $71.72 a barrel by 0109 GMT, while US West Texas Intermediate (WTI) crude fell 22 cents, or 0.32 percent, to $68.47 a barrel.
For the week, both Brent and WTI were down by around 0.3 percent.
Impact of US-Iran peace talks
Oil prices came under pressure as investor optimism over a possible full reopening of the Strait of Hormuz grew amid ongoing peace talks between the United States and Iran, according to analysts at Commerzbank.
Meanwhile, trading activity was expected to remain subdued, with U.S. financial markets closed on Friday ahead of the Independence Day holiday on Saturday.
Pakistan, Qatar report progress
Pakistan’s Foreign Office spokesperson, Tahir Andrabi, on Thursday said Pakistani and Qatari mediators had concluded separate meetings with the US and Iranian delegations in Doha, building on the outcomes of last month’s Lake Lucerne Summit and advancing implementation of the Islamabad Memorandum of Understanding (MoU).
“The parties have agreed to continue discussions over the coming period, with the next meeting to be scheduled at the earliest possible,” Andrabi said in a post on X.
Qatar’s Foreign Ministry also reported progress in the negotiations.
Foreign Ministry spokesperson Majed Al Ansari said Pakistani and Qatari mediators had concluded separate meetings with US and Iranian negotiators, making “positive progress” on issues related to the Islamabad MoU while building on understandings reached at the Lake Lucerne Summit.
Some commercial shipping has resumed through the Strait of Hormuz, in line with the initial US-Iran agreement. However, uncertainty remains high after the two countries exchanged military strikes last weekend following an Iranian attack on a cargo vessel.
Amid expectations of improved export routes, Gulf oil producers are moving to boost production in anticipation of higher shipments.
