Oil prices edged lower on Tuesday, extending the previous session’s losses as investors awaited clearer signs that crude shipments through the Strait of Hormuz were returning to normal following recent US-Iran peace talks.
Brent crude futures slipped 20 cents, or 0.3%, to $77.70 per barrel, while US West Texas Intermediate (WTI) fell 12 cents, or 0.2%, to $73.74 per barrel.
Prices had dropped more than 3% on Monday after the United States granted Iran a 60-day sanctions waiver following initial peace negotiations, while reports of a lull in hostilities in Lebanon also eased concerns over regional supply disruptions.
“The gradual increase in oil flows through the Strait of Hormuz continues to weigh on the market,” analysts at ING said in a note.
Ship-tracking data showed that two crude tankers carrying nearly two million barrels of oil passed through the Strait of Hormuz on Monday, indicating that shipping traffic is gradually recovering after slowing over the weekend amid security concerns.