LONDON, April 21 (Reuters) - Oil prices fell on Tuesday with expectations that peace talks between the U.S. and Iran might help to reopen the Strait of Hormuz, despite U.S. President Donald Trump saying he does not want to extend a ceasefire which is running out within hours.
Brent crude futures edged down by 40 cents, or 0.4%, to $95.08 a barrel by 1329 GMT while U.S. West Texas Intermediate (WTI) for May lost 41 cents to $89.20. The WTI May contract expires on Tuesday and the more active June contract traded down 0.5% at $87.00.
The Brent and WTI benchmarks surged on Monday, rising by 5.6% and 6.9% respectively after Iran shut the Strait of Hormuz again and the U.S. seized an Iranian cargo ship as part of its ports blockade.
Trump told CNBC in an interview on Tuesday that he did not want to extend a ceasefire with Iran, adding that the U.S. would end up with what he called a great deal.
Underscoring the uncertainty, an Iranian official said that no decision had been made to attend talks.
Shipping through the Strait of Hormuz, a corridor for about a fifth of the world's oil supply, remained limited on Monday and EU Energy Commissioner Dan Jorgensen said that fuel shortages would result in a difficult summer for Europe, even in a best-case scenario.
Meanwhile, firefighters were still tackling a blaze at Russia's Black Sea port of Tuapse on Tuesday, more than 24 hours after a Ukrainian drone attack, local authorities said. Tuapse is an oil product export hub and home to an oil refinery of the same name, owned by Rosneft (ROSN.MM).
Russia has been forced to reduce oil output in April by nearly 300,000 to 400,000 barrels per day, according to five sources and Reuters calculations.
Russia is also set to stop oil exports from Kazakhstan to Germany via the Druzhba pipeline from May 1, three industry sources told Reuters.
The market is also awaiting the U.S. crude and refined product stockpile data.
"A continued rise in U.S. crude oil and product exports would confirm the scarce availability of oil in the Far East and Europe and could provide renewed support to oil prices," PVM's Tamas Varga said.
Reporting by Seher Dareen in London, Anmol Choubey in Bengaluru and Emily Chow in Singapore Editing by Alexander Smith, Mark Potter and David Goodman
