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Crude Oil Falls 1% as US-Iran Talks in Doha End Without Deal
Brent crude dipped to $70.83 after US-Iran talks in Doha ended without a deal. EIA data showed draws in crude and gasoline stocks. The next round of talks is scheduled after July 9.
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Crude oil futures fell about 1% on Thursday after the United States and Iran wrapped up two days of indirect talks in Doha with no agreement. September Brent settled at $70.83, down 1.03%. West Texas Intermediate for August delivery traded at $67.84, down 1.08%. On India's Multi Commodity Exchange, July crude opened at ₹6,469, down 0.86% from Wednesday's close.
Reuters reported, citing unnamed sources, that negotiators discussed maritime traffic through the Strait of Hormuz and the unfreezing of Iranian funds. There was no sign of progress toward a lasting peace. Qatar's Foreign Ministry said the next meeting will take place after funeral processions for Iran's late Supreme Leader Ayatollah Ali Khamenei, who is due to be buried on July 9.
Inventory Draws and Demand Divergence
The more immediate price anchor came from the U.S. Energy Information Administration's weekly petroleum status report. For the week ending June 26, commercial crude inventories fell 3.8 million barrels to 408.4 million barrels. That is about 7% below the five-year seasonal average. Gasoline stocks dropped 2.3 million barrels and are also 7% below the five-year average. Distillate fuel inventories rose 2.5 million barrels. They remain 8% below the five-year average.
The EIA's product-supplied data shows a split in demand trends. Over the past four weeks, total products supplied averaged 20.6 million barrels a day, up 1.7% from a year earlier. Motor gasoline product supplied averaged 9 million barrels a day, down 2.6% year-on-year. Distillates fell 1.9%. Jet fuel product supplied rose 0.6%.
The mixed demand picture complicates the bullish inventory story. Gasoline consumption, a key driver of summer refining margins, is running below last year's level. Total demand is higher. The composition matters for refinery economics and crude import requirements.
For crude oil traders, the inventory draw and the Iran timeline form the two short-term anchors. The crude and gasoline stocks fell below seasonal averages. The next meeting in the talks is scheduled after July 9. The next EIA report is due Wednesday.