Oil prices drop after Trump cancels attack on Iran to seek deal

By Shadia Nasralla

LONDON, Aug 3 (Reuters) - Oil prices fell much than $5 a tube connected Monday aft U.S. President Donald Trump held disconnected connected a caller onslaught connected Iran successful ‌the anticipation of sealing a speedy deal, though Tehran said nary talks were planned.

Brent crude ‌futures were down $4.49, oregon 5.11%, to $83.44 astatine 1315 GMT, having retraced immoderate losses from a three-week debased deed earlier successful the session. ​U.S. West Texas Intermediate crude was astatine $79.28 a barrel, down $5.39, oregon 6.37%. Both benchmarks marked their biggest regular falls successful implicit and percent presumption since past Monday.

The 2 contracts jumped much than 20% past period aft warring betwixt the U.S. and Iran resumed and attacks connected respective tankers astir Oman heightened information concerns, deterring ‌shippers from entering the Gulf to ⁠load oil.

Iran said connected Monday determination were nary talks nether mode with the U.S. and nary plans for immoderate meetings, contradicting Trump who had cited talks helium ⁠said would instrumentality spot arsenic justification for calling disconnected attacks.

CAN A DEAL HAPPEN?

"Given the persistent depletion of planetary lipid inventories, we would expect firmer prices during August — unless, of course, lipid flows successful the portion retrieve meaningfully and ​sustainably, ​while besides keeping a watchful oculus connected signs of ​weakening demand. Under the existent VVV trading conditions (volatile, ‌vicious, and violent), the likelihood of getting it embarrassingly incorrect are reasonably high," said PVM expert Tamas Varga.

Six Saudi-flagged supertankers person changed people successful the Gulf of Aden successful caller days and are heading to confederate Africa amid threats by Yemen's Houthi question to people Saudi shipping, ship-tracking information showed connected Monday.

The United Kingdom Maritime Trade Operations has reported 3 tanker attacks since Saturday.

On Sunday, the Organization of the ‌Petroleum Exporting Countries and allies, known arsenic OPEC+, approved an ​oil accumulation quota summation of astir 188,000 barrels per time ​from September.

Export disruptions from the Gulf, Russia and ​Kazakhstan, caused by the Iran and Ukraine wars, person meant successive monthly OPEC+ ‌hikes implicit astir of this twelvemonth person not ​translated into other lipid ​on the market.

Elsewhere, Kazakhstan's crude lipid and state condensate accumulation fell to astir 1.85 cardinal bpd, oregon 7.6 cardinal metric tons, successful July from 2.16 cardinal bpd successful June, an manufacture root ​familiar with operational information told Reuters.

The ‌decline was linked to disruptions astatine the Caspian Pipeline Consortium, the main export way for ​Kazakh oil, the root said.

(additional reporting by Anushree Mukherjee successful Bengaluru, Florence Tan and ​Sam Li. Editing by David Holmes and Mark Potter)