Oil Prices Edge Down as Middle East Talks Awaited

Oil prices slipped marginally on Thursday, extending losses from the previous session as market participants assessed the likelihood of a peace agreement in the Middle East. By 10:04 Moscow time, US West Texas Intermediate crude futures for June delivery had fallen 0.64% to $94.47 per barrel. Global benchmark Brent crude futures for July delivery dropped 0.53% to $100.73 per barrel.

Earlier in the trading day, US crude had risen 1.2% and Brent had climbed 0.9%. The two benchmark contracts had plunged more than 7% on Wednesday amid optimism that the war in the Middle East could end. However, they trimmed those losses after US President Donald Trump said it was "too early" for direct talks with Tehran, and a senior Iranian deputy described the latest US proposal as closer to a wish list than reality.

Even if a peace deal is reached, oil supply shortages are expected to worsen in the coming weeks. Resuming crude shipments from the Gulf and getting them to refineries worldwide will take weeks, forcing oil companies to continue drawing from their inventories to meet peak summer demand.