Oil prices ease on expectations of Hormuz Strait reopening amid Iran-Qatar talks

BASRA, Iraq — LONDON — Oil prices declined on Tuesday on expectations that diplomatic efforts between Iran and Qatar could ease supply disruptions in the Persian Gulf. Brent crude fell 41 cents, or 0.5%, to $87.43 a barrel, while West Texas Intermediate dropped 37 cents, or 0.5%, to $81.86, according to market data. Brent has now declined for four consecutive sessions and WTI for five, extending losses driven by hopes that Qatar's prime minister's visit to Iran could revive efforts to end a conflict that has lasted roughly six months. The diplomatic push eased concerns over supply through the Strait of Hormuz, which before the war carried about one-fifth of global oil and gas shipments. Flows through the strait have fallen to roughly one-quarter of pre-war levels since it was closed. Damage to refineries in the region and attacks on Russian refineries have kept pressure on global diesel supply, keeping supply concerns in focus. U.S. distillate inventories, which include diesel and heating oil, fell by 2.2 million barrels to 103.4 million barrels in the week ending August 21, according to the data.