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By Stephanie Kelly and Anushree Mukherjee June 16 (Reuters) - Oil prices fell nearly 3% on Tuesday to a fresh three-month low as markets weighed prospects for a resumption of supplies through the Strait of Hormuz alongside weaker physical demand and scant details on a preliminary deal to end the Iran war.
Brent crude futures were down $2.48, or about 3%, at $80.69 a barrel by 1205 GMT.
The benchmark fell as far as $80.62 per barrel, the lowest since March 4.
West Texas Intermediate was down $2.48, or 3.1%, at $78.27 a barrel, after dropping to $78.14, the lowest since March 10.
Both contracts fell for a fourth straight session.
Oil prices sank nearly 5% on Monday after U.S.
President Donald Trump announced an interim deal to end the U.S.-Israeli war with Iran, though full details have not been released.
Iranian Foreign Minister Abbas Araqchi said on Tuesday that Iran and the U.S.
would start a new round of talks in Switzerland on Friday to reach a final agreement.
"Near-term downside risks remain as the market prices a faster reopening of the Strait and a return of stranded barrels," Saxo Bank analyst Ole Hansen said.
However, depleted inventories, seasonal demand strength, strategic stock rebuilding and lingering geopolitical uncertainty suggest that the path back to pre-war oil prices may be far less straightforward than current market optimism implies, Hansen said.
The conflict led to the closure of the Strait of Hormuz, which typically carries about one-fifth of global oil supplies.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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