Washington, June 25 (SANA) Oil prices extended losses on Thursday, falling to their lowest levels since late February as easing concerns over Middle East supply disruptions and expectations of higher crude exports weighed on the market.
Brent crude futures for August delivery fell $1.22, or 1.65%, to $72.52 a barrel, while U.S. West Texas Intermediate crude dropped $1.02, or 1.45%, to $69.32 a barrel, Reuters reported.
Both benchmarks fell to their lowest levels since Feb. 27, erasing much of the gains triggered by the outbreak of conflict in the region.
The August Brent contract traded below the September contract, a market structure that signals ample short-term crude supply.
Prices had already fallen by more than $3 on Wednesday after concerns over potential supply disruptions through the Strait of Hormuz eased.
U.S. Energy Secretary Chris Wright said on Wednesday that oil flows through the strategic waterway had nearly returned to pre-conflict levels, with at least 20 million barrels transported through the strait over the previous 24 hours.
Wright said a full return to normal operations could take several weeks because of ongoing mine-clearance operations.
Additional downward pressure came from expectations of increased crude exports from the Middle East, including Iran’s plans to raise oil sales following a temporary waiver from U.S. sanctions.
The United States and Iran signed a memorandum of understanding in Islamabad on June 18 and have since launched a new round of negotiations in Switzerland aimed at resolving outstanding issues following the recent U.S.-Israeli conflict with Iran.
N.J/ABD
