Oil prices fell below $75 a barrel at 1206 GMT on Wednesday, returning to levels last seen before Feb. 28, as signs of a recovery in tanker traffic through the Strait of Hormuz and expectations of continued diplomatic engagement between Russia and the US eased geopolitical concerns.
International benchmark Brent crude traded at $74.72 per barrel at 3.06 p.m. local time (1206 GMT), down around 2.7% from the previous close of $76.8.
US benchmark West Texas Intermediate (WTI) fell 2.9% to $71.07 per barrel, compared with $73.21 in the previous session.
Market sentiment improved after Oman said it was coordinating with the International Maritime Organization (IMO) on the option of establishing a temporary maritime corridor open to all vessels, according to a statement by the country's Ministry of Transport.
Data from analytics firm Kpler and shipping tracker MarineTraffic showed tanker traffic through the Strait of Hormuz gradually recovering following a 14-point agreement between the US and Iran that included the reopening of the strategic waterway.
A total of 172 vessels transited the strait between June 18-22, bringing the daily average to 34 ships. Traffic has therefore recovered to roughly 25% of pre-conflict levels, according to the data.
Adding to downward pressure on prices, US President Donald Trump stated that Iran agreed to "never have a nuclear weapon." "We're leaving them without any nuclear capacity, and they've agreed to that, and we're getting along quite well."
"We just achieved a historic peace agreement with Iran to end the conflict in the Strait of Hormuz," he said.
The US president also previously stated that a record 19 million barrels of oil ha d flowed through the Strait of Hormuz on Monday.
- Russia announces plans for new talks with US
Russia and the US plan to hold a new round of consultations aimed at resolving longstanding disputes in their bilateral relationship, Russian Deputy Foreign Minister Sergey Ryabkov said Wednesday.
"I can confirm that such plans exist. There's nothing to announce because there are no specific deadlines, but it's understood they will continue," Ryabkov told the Izvestia newspaper at the Primakov Readings foreign policy forum.
Ryabkov said he expected the consultations to take place by the end of summer, although he acknowledged difficulties in bilateral dialogue to eliminate these "mutual irritants."
The comments reinforced expectations that communication channels between Russia and the US will remain open, a factor that analysts say could further reduce geopolitical risk perceptions and exert limited downward pressure on oil prices.
By Ebru Sengul Cevrioglu
Anadolu Agency
energy@aa.com.tr
