CRUDE WRAP: WTI (M6) SETTLES USD 5.21 LOWER AT USD 88.69/BBL; BRENT (Q6) SETTLES USD 4.42 LOWER AT USD 92.25/BBL

Crude prices traded lower amid reported progress on US-Iran negotiations, with markets continuing to place greater significance on diplomatic efforts since the weekend. Today's updates, for the most part, had short-lived impacts on price action. Downside was initially seen after Iran State TV said it has a draft of the initial unofficial framework for the MoU with the US, sending crude prices lower; the move unwound, however, after the White House leaned back on the report. The MoU, via Iranian media, included management and route of ship traffic via Hormuz to be handled by Iran in cooperation with Oman, and no steps to be taken without "tangible verification". That said, crude downside resumed, settling near the lows of USD 87.77bbl for WTI and USD 92.47/bbl for Brent. In the US afternoon, Trump boldly said Oman will have to behave, or we will have to blow them up. Separately, Trump said there would be no Iran sanctions relief in exchange for giving up uranium. Ultimately, Trump's remarks had little sway over crude prices in later trading, as attention centres on the potential for a sustained breakthrough in talks. Private Inventory data will be watched after the US cash close, ahead of EIA's weekly inventory report on Thursday.