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Oil prices mixed as hopes of Strait of Hormuz de-escalation resurface
Brent settled at $79.45 a barrel, up 0.1%, while a 2.5 million barrel rise in U.S. crude inventories weighed on West Texas Intermediate, which fell to $75.22.
Oil prices were mixed on Wednesday as investors balanced revived expectations for a de-escalation between the United States and Iran that could restore shipping traffic through the Strait of Hormuz, a key route for Middle East oil flows, according to Reuters.
Brent crude futures settled up 9 cents, or 0.1%, at $79.45 a barrel, while U.S. West Texas Intermediate futures edged lower, falling 55 cents, or 0.7%, to $75.22.
U.S.-Iran tensions have been in focus after reports of renewed negotiations. The U.S. President said there was an all day negotiation with Iran, while Iran denied that peace talks were under way, and its foreign ministry said Iran and Oman reached an understanding on managing the Strait of Hormuz, with a joint announcement being finalized.
The market also weighed domestic supply signals. Reuters cited U.S. Energy Information Administration data showing crude stockpiles rose 2.5 million barrels to 407 million barrels last week, compared with expectations for a 1.5 million barrel draw, and it noted a rise in inventories at the Cushing, Oklahoma, delivery hub that added pressure on the U.S. benchmark.
Latest closeWTI crude $78.07 ▲3.8%|Brent $83.46