Oil falls after Trump cancels attack on Iran to seek nuclear deal
XLE•Market watchers and tanker traffic
"The bigger focus is whether this week turns into a rinse and repeat of last week — with hopes of a deal collapsing as Iran digs in its heels and continues to leverage its control over the Strait, potentially through an attack on a U.S. base or a tanker transiting the waterway," IG market analyst Tony Sycamore said.
Two tankers laden with Saudi oil crossed the Bab el-Mandeb Strait out of the Red Sea over the weekend while traffic in the Strait of Hormuz slowed following reports of vessel attacks, shipping data showed on Monday.
The United Kingdom Maritime Trade Operations has reported three more tanker attacks since Saturday.
OPEC+ approves September output hike
On Sunday, the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, approved an oil production quota increase of around 188,000 barrels per day from September, which would complete the producer group's unwinding of a layer of voluntary output cuts.
Export disruptions from the Gulf, Russia and Kazakhstan, caused by the Iran and Ukraine wars, have meant successive monthly OPEC+ hikes over most of this year have not translated into extra oil on the market and have had little impact on prices.
Oil prices fall on de-escalation hopes
SINGAPORE, Aug 3 (Reuters) - Oil prices fell more than $4 a barrel on Monday after U.S. President Donald Trump held off a fresh attack on Iran as he sought a quick deal that would halt Tehran's nuclear ambitions and reopen the Strait of Hormuz.
Brent crude futures LCOc1 fell $4.65, or 5.29%, to $83.28 by 0702 GMT while U.S. West Texas Intermediate crude CLc1 was at $79.47 a barrel, down $5.20, or 6.14%.
