TOKYO/SINGAPORE: Oil prices fell more than $2 a barrel on Wednesday as talks between Iran and Oman revived hopes that the Strait of Hormuz could reopen and remove shipping constraints affecting supply in the key Middle East region.
Brent crude futures fell $2.30, or 2.6 percent, to $86.28 a barrel by 07:47 a.m. Saudi time, earlier dropping to their lowest since Aug. 13. US West Texas Intermediate crude futures were down $2.08, or 2.53 percent, at $80.29, earlier sinking to their lowest since Aug. 10.
Both benchmarks fell more than 3 percent on Tuesday.
“The market continues to react to developments surrounding navigation through the Strait of Hormuz, and hopes for progress in talks between Iran and Oman have triggered selling,” said Mitsuru Muraishi, an analyst at Fujitomi Securities.
“That said, uncertainty over the outlook has prompted bargain buying, limiting further losses, and prices are likely to remain range-bound for the time being,” he added.
