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WTI trades near $73.80 as Strait of Hormuz talks ease supply fears
US crude inventories rose 2.69 million barrels for the week ending July 31, after a 3.3 million-barrel build the prior week, helping pressure WTI.
WTI slipped after paring earlier gains, trading around $73.80 per barrel during Asian hours Wednesday as concerns about supply eased on reports of diplomatic momentum to reopen the Strait of Hormuz. FXStreet said the shift came after Qatari officials drafted an interim proposal, with Washington and Tehran signaling tangible progress toward restoring access to the critical maritime transit route.
The outlet also pointed to US President Donald Trump’s decision to suspend planned military strikes against Iran to give negotiations room, while he continued to call for the waterway to reopen. Regional efforts cited include Iran reviewing a framework to allow European nations to clear naval mines from the strait, discussions with Oman to safeguard trade routes, and Saudi engagement with Yemen’s Houthi rebels via Omani channels to help prevent escalation in the Red Sea corridor.
On the demand and supply side, FXStreet reported that US crude oil inventories rose by 2.69 million barrels for the week ending July 31, compared with expectations of a 2 million-barrel draw, following a 3.3 million-barrel increase the previous week. Excluding the Strategic Petroleum Reserve, commercial crude inventories have fallen by more than 58 million barrels over the past 16 weeks and are down 7.2 million barrels year-to-date, while the SPR declined by 2.9 million barrels to 304.8 million barrels, approaching an estimated operational minimum of 250 to 300 million barrels.
BNY’s Geoff Yu was cited noting that Saudi Aramco has maintained operations despite disruptions, crediting alternative pipelines, storage, and export terminals for preserving business continuity even as geopolitical risks around key shipping lanes remain elevated.
Latest closeWTI crude $75.32 ▼6.2%