Oil treads water as US-Iran peace talks stall, Hormuz shipping slows

Both contracts gained more than 5% last week following attacks on tankers operated by Abu Dhabi National Oil Company in the Hormuz strait and on a Saudi Aramco refinery

Oil prices barely moved in early trade on Monday as tanker traffic through the ​Strait of Hormuz slowed over the weekend ​with no peace deal in sight between the United States ‌and Iran to end the conflict in the Middle East.

Brent crude futures climbed 20 cents, or 0.2 per cent, to $88.72 by 2350 GMT, while US West Texas Intermediate crude futures slipped 5 cents to $82.35 a barrel.

Both contracts gained more than 5 per cent last week following attacks on tankers operated by Abu Dhabi National Oil Company in the Hormuz strait and on a Saudi Aramco refinery.

Over the weekend, Iranian Foreign Minister Abbas Araqchi ‌said Iran had not decided to resume talks with the US while US President Donald Trump urged Americans to accept slightly higher gasoline prices while the conflict continues.

"The status quo remains. Both sides remain firmly dug in and the market is left weighing the risk of tighter supply against the comfort of workarounds ​and other informal channels," IG market analyst Tony Sycamore said in a note.

Shipping ‌through the Strait of Hormuz slowed over the weekend, data showed on Monday, following attacks on tankers. Five commodity ​vessels ‌transited the strait on Saturday, with none registered for Sunday, shiptracking data ‌from Kpler showed, versus 31 in the prior weekend.

The United Arab Emirates accused Iran of attacking a third vessel operated ‌by ​ADNOC that was ​transiting the strait on Friday, the Emirati state news agency WAM reported, after blaming it for two other incidents ‌involving ADNOC vessels ​in the strait on Thursday evening.

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