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WTI holds near three-week low as Hormuz shipping talks await sign-off
WTI was around $74 per barrel, after US EIA data showed crude inventories rose 2.479 million barrels, and traders cited uncertainty over whether any Iran-Oman understanding would reopen the Strait of Hormuz.
West Texas Intermediate crude held near a three-week low as traders waited for confirmation that commercial shipping through the Strait of Hormuz will resume. WTI was trading around $74 per barrel, with downside pressure tempered by hopes for progress on the waterway.
Iran and Oman have reached an understanding on the geographic coordinates for a proposed shipping route, Iran’s Foreign Ministry said, with a joint statement said to be in the final stages of review and drafting, as long as third parties do not interfere. However, an informed source told Fars News that an Iran-Oman agreement would not automatically reopen the Strait, with separate arrangements still needed, including the fulfilment of US commitments.
While final terms remain pending, a geopolitical risk premium is expected to stay embedded in oil prices, limiting the scope for a deeper drop. Separately, US Energy Information Administration data showed crude oil inventories unexpectedly rose 2.479 million barrels versus expectations for a 1.5 million-barrel decline, after stocks fell 7.167 million barrels the week prior.
The daily technical outlook remains bearish, with price holding below the 21-day, 50-day, and 100-day simple moving averages. Resistance was cited near the 50-day SMA around $79.58 and the 21-day SMA at $80.27, while the $67.00 to $70.00 area was identified as immediate support that could define how far the selloff may extend.
Latest closeWTI crude $75.32 ▼6.2%