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US NEWS 
- Tehran says U.S. team to meet mediators in Doha, not with Iranian officials
- U.S. crude inventories fell by 6.1 million barrels last week, API data showed
July 1 (Reuters) – Oil prices fell more than 1% on Wednesday as talks between Iran and the U.S. aimed at reaching a final agreement to end their war continued and the market awaited data from the U.S. regarding stock draws.
Brent futures fell $1.14, or 1.6%, to $71.81 a barrel at 0859 GMT, while U.S. West Texas Intermediate crude was down $1.11, or 1.6%, to $68.39 a barrel.
“Stuttering talks between the U.S. and Iran are raising concerns of fresh supply disruptions. On the other hand, investors are confident that whatever issues are hindering negotiations will be resolved soon,” said PVM Associates analyst Tamas Varga.
“All in all, the downside bias is intact, hard data in the form of stock depletion or the re-closure of the strait might alter the prevailing mood.”
Indirect technical talks between the United States and Iran are under way in Doha with Qatar and Pakistan serving as mediators, a source with direct knowledge of the discussions told Reuters on Wednesday.
U.S. President Donald Trump’s son-in-law Jared Kushner and envoy Steve Witkoff arrived in Doha for what the White House described as “high level” talks on Tuesday. But Iran and host Qatar said they would meet with mediators rather than the Iranians themselves.
Brent fell by around $45 a barrel in the second quarter of this year, its largest quarterly loss since the global financial crisis in 2008. U.S. crude futures, meanwhile, fell by around $31, their largest quarterly loss since 2020, when the COVID-19 pandemic crushed global oil demand.
The declines followed progress toward ending the Middle East conflict, after sharp gains in March triggered by the outbreak in hostilities.
Following five straight monthly increases, analysts have cut their 2026 oil price forecasts, opens new tab for the first time since the Iran war began, as the reopening of the Strait of Hormuz eased concerns over prolonged supply disruptions, a Reuters poll showed.
Tanker traffic through the critical waterway has started to recover, with U.S. Vice President JD Vance claiming that oil flows through the strait had been restored to pre-war levels.
Meanwhile, markets are awaiting official U.S. oil stock data from the Energy Information Administration, which will be released at 10:30 a.m. EDT (1430 GMT) on Wednesday. U.S. crude oil inventories fell again last week, market sources said, citing data from the American Petroleum Institute released on Tuesday.
Reporting by Mohi Narayan in New Delhi and Georgina McCartney in Houston; Editing by Shri Navaratnam, Kevin Buckland and Joe Bavier
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