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Oil prices fall as Iran-Oman talks steady Hormuz disruption risk
U.S. crude inventories rose by 95,000 barrels to 428.9 million in the week ended Aug. 21, less than analysts expected.
Oil prices slipped on Wednesday as investors tracked negotiations between Iran and Oman over shipping through the Strait of Hormuz, while a smaller-than-expected increase in U.S. crude stocks helped limit declines, according to Reuters.
Brent crude futures fell 71 cents, or 0.8%, to $87.87 a barrel at 10:48 a.m. EDT, and West Texas Intermediate crude futures fell 48 cents, or 0.6%, to $81.88. Both benchmarks dropped to their lowest levels since Aug. 10 earlier in the session before paring losses after the inventory data.
Reuters reported that U.S. crude inventories increased by 95,000 barrels to 428.9 million barrels in the week ended Aug. 21, compared with a Reuters poll expectation for a 597,000-barrel rise. Analysts said the Iran-Oman talks have shifted market sentiment away from pricing a prolonged disruption.
Hopes for increased traffic through the strategic strait and partial reopening plans also weighed on prices, with ship-tracking data from Kpler showing only five commodity vessels transited the waterway on Tuesday, down from the 10-day average of 15 and below pre-war levels. The report added that efforts to broaden a settlement to the Iran conflict continue, while Ukraine struck Lukoil’s NORSI oil refinery in the Nizhny Novgorod region overnight.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%