Brent Slides for Fourth Day as Urals Drops to $64.32 on Hormuz Diplomacy

Crude oil prices retreated on Thursday, August 27, weighed down by expectations that diplomatic discussions regarding Iran could facilitate the reopening of the Strait of Hormuz and ease supply disruption fears in the Middle East.

Brent crude futures fell 0.5% ($0.41) to $87.43 per barrel as of 03:30 GMT, marking four consecutive sessions of declines. US West Texas Intermediate (WTI) crude slipped 0.5% to $81.86 per barrel. Meanwhile, Russian Urals crude dropped 0.88% ($0.57) to trade at $64.32 per barrel.

Selling pressure stemmed from anticipated diplomatic progress over the critical maritime corridor. Iran and Oman are negotiating terms regarding control of the Strait, while Qatar's prime minister is scheduled to visit Iran on Thursday to resume talks. Prior to recent geopolitical flare-ups, roughly one-fifth of global oil and liquefied natural gas flows navigated through the Strait of Hormuz.

N.Tebrizli