Oil falls after US-Iran talks signal easing supply risks
Oil prices rose on Monday after shipping through the Strait of Hormuz slowed while talks between U.S. and Iranian officials in their first meeting under an interim peace deal were off to a bumpy start.Brent crude futures climbed 54 cents or 0.67%, to $81.11 a barrel by 0030 GMT, after touching a high of $82.30 at the start of trading.U.S. West Texas Intermediate crude futures were at $78.62 a barrel, up $2.02, or 2.64% ahead of the contract’s expiry later on Monday. The more active August contract rose $1.43 to $77.28 a barrel. There was no settlement in the U.S. market on Friday due to a holiday.The number of ships that passed the Strait of Hormuz fell sharply on Sunday after Iran announced it had again closed the waterway, citing Israeli and U.S. violations of the interim peace deal, shipping data showed.”The market’s expectation of the opening of the Strait has been premature,” MST Marquee head of energy research Saul Kavonic said.”Iran is likely to continue to find pretexts to stymie flows through the Strait, as that remains their only point of leverage into the mid-terms which they are unlikely to let go of.”