Oil prices posted modest gains on Thursday, with Brent crude rising 0.3% to settle at $71.80 per barrel and WTI adding 0.2% to $68.69 per barrel, as traders covered short positions and secured supplies ahead of the U.S. Independence Day holiday weekend.
Market sentiment remained centered on the gradual normalization of oil flows through the Strait of Hormuz. Qatar reported continued progress in U.S.-Iran negotiations toward a permanent peace agreement, although officials cautioned that significant issues remain unresolved and further talks are expected after July 9. The improving diplomatic outlook has continued to reduce the geopolitical risk premium that supported oil prices earlier this year.
Supply conditions also continued to improve. Multiple Saudi supertankers carrying approximately 10 million barrels of crude departed through the Strait of Hormuz, while Saudi Arabia reportedly shifted more cargoes to spot sales in Asia to accelerate exports. At the same time, analysts noted that global supply has been supplemented by ongoing releases from strategic petroleum reserves, while demand growth—particularly in China—has remained relatively subdued.
Although U.S. crude inventories recently declined to their lowest level since 2018 amid strong refinery demand, the broader market continues to focus on improving supply prospects. Several financial institutions lowered their oil price forecasts as shipping through the Strait of Hormuz continues to recover, though some analysts expect prices to stabilize later in the year as strategic reserve releases conclude and global inventories begin to rebuild.