Oil Extends Loss as U.S. and Iran Signal Return to Negotiations - Bloomberg

Oil Extends Loss as U.S. and Iran Signal Return to Negotiations - Bloomberg:

Oil extended losses below $60 a barrel on the prospect of easing tensions between the U.S. and OPEC member Iran, and as Gulf of Mexico producers began resuming operations after a storm.

Futures fell as much as 3.2% in New York on Tuesday, after Secretary of State Mike Pompeo said Iran, which has been hit by American sanctions over its weapons program, had signaled an openness to talks. That followed similar comments from the Islamic Republic’s foreign minister, Mohammad Javad Zarif, the first signs of a possible diplomatic solution since the U.S. sought to curb the Middle East producer’s revenues by squeezing its oil exports.

Oil explorers and refiners along the Gulf coast, meanwhile, are returning employees after the former Hurricane Barry shuttered almost three-quarters of output over the weekend. That’s expected to be a factor in the latest tally of American stockpiles, which probably declined by 3 million barrels last week, according to a Bloomberg survey.

August West Texas Intermediate oil was down $1.91 at $57.67 a barrel on the New York Mercantile Exchange as of 1:25 p.m., after losing 1.1% on Monday. Brent futures for September settlement slipped $1.69 to $64.79 on the ICE Futures Europe Exchange in London. The global benchmark crude was at a premium of $6.80 to WTI for the same month.