Oil prices extend losses on expectations talks to ease Middle East supply woes

Oil rates extend losses on expectations negotiations to ease Middle East supply woes.

Key points

• Brent crude futures were down 60 cents, or 0.7%, to $87.24 a barrel ‌by 0004 GMT, down for a fourth day.
• West Texas Intermediate crude futures fell 56 cents, or 0.7%, at $81.67, down for a fifth day.
• Brent crude futures were down 60 cents, or 0.7%, to $87.24 a barrel.
• Oil rates fell as diplomatic negotiations between Iran and Qatar raised hopes for the reopening of the Strait of Hormuz, potentially easing Middle East supply disruptions.
• Almost 1, 500 missing in Nepal and China after devastating Himalaya flood.

Brent crude futures were down 60 cents, or 0.7%, to $87.24 a barrel. Published August 27, 2026 Updated August 27, 2026 01: 20pm. AI Overview (with editorial review). Brief AI Generated summary.

Oil rates fell as diplomatic negotiations between Iran and Qatar raised hopes for the reopening of the Strait of Hormuz, potentially easing Middle East supply disruptions. Diplomatic efforts to reopen the Strait of Hormuz. The Strait's critical role in global oil and gas shipments. Impact of Middle East and Russia-Ukraine conflicts on diesel supply. Record low U.S. Distillate stockpiles. Add BRecorder as a trusted source on Google.

Oil rates fell on Thursday, extending a streak of multiple days of losses, on expectations negotiations between Iran and Qatar may open the key Strait of Hormuz and reduce supply disruptions from the Middle East war.

After Iran's Revolutionary Guards stated the two countries had agreed how to share the waterway that connects major Gulf oil producers to markets and its ⁠revenues, iran and Oman are working on finalizing details of an agreement to control the Strait of Hormuz, a senior Iranian source remarked on Wednesday.

In practice, the strait carried oil and natural gas shipments equal to regarding one-fifth of global consumption of the fuels before the US-Israeli war on Iran kicked off on February 28.

Since Iran worked to shut the waterway in response, oil flows have dropped to regarding one-quarter of their pre-war level, according to ship-tracking data.

Though he cautioned "concerns over shortages in the oil market persist.", "Crude oil edged lower as the prospect of the Strait of Hormuz reopening improved amid ongoing talks, " remarked Daniel Hynes, senior commodity strategist at ANZ, in a note on Thursday.

Qatar's prime minister will head to Iran on Thursday to relaunch diplomatic discussions to end the conflict which is almost six months old.

In practice, the US has halted its ‌attacks ⁠on Iran for regarding a month and is seeking to impose greater economic pressure on Iran. It has raised investors' expectations for an easing of the Gulf supply disruptions.

Still, the countries are far apart on their demands to end the fighting and Iran has struck shipping in the Gulf and strait to impose its control on the waterway.

Iranian authorities have additionally noted the ⁠strait would not open unless the U.S. Met under an interim ceasefire agreement that was struck in June and afterwards unraveled.

ANZ's Hynes additionally pointed to the impact the Middle East war and the Russia-Ukraine war is having on the diesel market.

Middle ⁠East refineries have been damaged in that conflict and Ukraine has hit a number of Russian refineries, cutting exports from what was a major global diesel supplier.

Meanwhile, the curtailment in worldwide diesel output is showing up in inventory data. The U.S. ⁠Energy Information Administration documented on Wednesday stated distillate stockpiles, including diesel and heating oil, dropped by 2.2 million barrels in the week to August 21 to 103.4 million barrels.

Hynes remarked this is the lowest distillate stockpile level ever recorded for this time of year.

Oil falls over 4% as investors shrug off US sanctions on Iran.

Oil rates up 1%, near 3-week high as Middle East crisis escalates.

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Taken together, the developments around oil prices extend losses on expectations talks to ease Middle East supply point to a situation that is still moving, and the coming days should bring more clarity.