Crude Oil Prices Slide Amid Diplomatic Progress and Increased U.S. Inventories

Crude oil prices declined on Thursday as diplomatic progress between Iran and Oman reduced immediate supply concerns, while an unexpected increase in U.S. inventories added pressure.

The October Brent crude price traded at $79.08 a barrel, while September West Texas Intermediate fell to $74.69 as of 12:24 a.m. GMT on August 6.

Oil traders are weighing the possibility that talks involving Iran and Oman could support broader negotiations between Washington and Tehran, potentially removing part of the geopolitical premium built into Brent and WTI prices.

However, regional risks have not disappeared, with Iran warning of retaliation against energy infrastructure if another attack occurs. The uncertainty around tanker security in the Gulf also remains a concern.

The U.S. supply data weakened the near-term outlook, with commercial crude inventories rising by 2.5 million barrels to about 407 million barrels in the week ended July 31, contrary to analysts' expectations of a decline of roughly 1.5 million barrels.