SINGAPORE: Oil prices eased on Monday (May 4) after President Donald Trump said the US would begin an effort to free up ships stranded in the Strait of Hormuz, though the lack of a US-Iran peace deal kept prices supported above US$100.
Brent crude futures fell US$0.64, or 0.59 per cent, to US$107.53 a barrel by 11.08pm GMT (Monday, 7.35am, Singapore time) after settling down US$2.23 on Friday.
US West Texas Intermediate was at US$101.10 a barrel, down US$0.84, or 0.82 per cent, following a US$3.13 loss on Friday.
“For the good of Iran, the Middle East, and the US, 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 US$100 a barrel with no peace deal in sight, and traffic in the Strait of Hormuz was still limited.
Negotiations between the US 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.