Oil Falls More Than a Dollar on Rising Supplies to $88 a Barrel

Oil prices fell on Friday but are still on track to post a monthly gain of around one-fifth, as more supplies flow through vital sea lanes despite little progress in talks between the United States and Iran.

Brent crude futures fell $1.03, or 1.2 percent, to $88 a barrel by 0215 GMT, while U.S. West Texas Intermediate crude dropped $1.50, or 1.8 percent, to $82.09 a barrel. On a monthly basis, both are expected to rise by around 20 percent.

Daniel Hines, an analyst at ANZ, said crude oil prices are trending lower, as signs of increased flows through the Strait of Hormuz have offset the impact of rising tensions in the Middle East. Saudi Arabia is seeking to lead an alliance to enhance defense cooperation in the Bab el-Mandeb strait, the Red Sea, and the Gulf of Aden, all of which are vital energy supply routes.