EMEA Oil Update: Oil Futures Poised for Weekly Decline as US-Iran Diplomacy Holds

Crude oil futures were posed for a weekly loss on Friday pressured by an increase in supply via the Strait of Hormuz as US-Iran peace talks ease geopolitical tensions. The front-month Brent futures contract was steady at $71.82 per barrel. Murban futures edged higher 1% to $65.94/bbl. However, both contracts were headed for a weekly loss this week. "The oil market is on target for a fourth consecutive week of declines as flows through the Strait of Hormuz increase, with ICE Brent edging closer towards $70/bbl," ING analysts said. "The increase in oil flows is putting growing pressure on the front end of the ICE Brent forward curve. It's increasingly moving into contango, a sign of an oversupplied prompt market. The return of this supply coincides with continued SPR releases," ING said. The supply relief stems from both Saudi Arabia and the UAE aggressively ramping up export volumes toward pre-war levels. Bloomberg ship-tracking data revealed that 14 million barrels of crude cleared the vital Strait of Hormuz chokepoint on July 1 alone, with Saudi Arabia's flows recovering to roughly 90% of their pre-February levels. This restoration of supply combined with ongoing US.