Crude oil prices fell for a second day on expectations peace talks between the US and Iran may resume and eventually release supply from the key Middle East producing region.
Brent crude futures fell 0.37% to $94.44 a barrel after falling 4.6% in the previous session. US West Texas Intermediate crude declined 1.04% to $90.33 after dropping 7.9% the session before.
US President Donald Trump told the New York Post that the talks to end the war with Iran could resume in Pakistan over the next two days. This statement increased optimism that talks could eventually settle the conflict and open up crude oil and fuel flows.
Earlier, the US-Iran talks collapsed over the weekend, prompting Washington to impose a blockade on Iranian ports.
Despite a two-week ceasefire, transit through the Strait of Hormuz remains uncertain, with traffic at only a fraction of the 130 or so vessels that moved through the waterway before the war, Reuters reported, quoting sources.
(More to come)
(With inputs from Agencies)