Oil price today: Why are Brent crude futures, U.S. West Texas Intermediate down?

Oil prices have dropped after U.S. President Donald Trump said the United States would begin an effort to free up ships stranded in the Strait ‌of Hormuz, however the ⁠lack ⁠of a U.S.-Iran peace deal kept prices supported above $100.





Brent crude futures fell 64 cents, or 0.59 per cent, to $107.53 a barrel after settling down $2.23 on Friday. U.S. West Texas Intermediate was at $101.10 a barrel, down 84 cents, or 0.82 per cent, following a $3.13 loss on Friday.




"For the good of Iran, the Middle East, and the United States, we have told ​these Countries that we will guide their Ships safely ⁠out of ‌these restricted Waterways, so that they can freely and ably ​get on with ​their business," Trump wrote in a post on his Truth ⁠Social site on Sunday. Oil prices remained above $100 a barrel ​with no peace deal in sight and traffic in the ​Strait of Hormuz still limited. Negotiations between the U.S. and Iran continued over the weekend with the countries assessing responses from each other.




"Peace talks have been stalled as both sides refuse to move on their respective red lines," ANZ analysts said in a note.




Trump has made a nuclear deal with Tehran a ‌priority, while Iran has proposed to set aside nuclear issues until after the war ends and the foes agree to lift opposing ​blockades on Gulf shipping.




On ​Sunday, the Organization ⁠of the Petroleum Exporting Countries and their allies, or OPEC+, said they will raise oil output targets by 188,000 barrels per day in June for seven members, the third ​consecutive monthly rise.




The increase is the same as that agreed for May minus the share of the United Arab Emirates, which left OPEC on May 1. However, the higher volume will remain largely on paper as long as the Iran war continues to disrupt Gulf oil supplies through the Strait of Hormuz.