Oil Prices Rebound as US-Iran Talks Stall and Hormuz Shipping Remains Restricted
Oil prices have rebounded as diplomatic efforts between the US and Iran stall and shipping through the Strait of Hormuz remains severely restricted. On Thursday, West Texas Intermediate (WTI) crude rose to around $93.06 per barrel, up $0.90 or 0.98% from Wednesday's settlement price of $92.16.
Brent crude also increased, reaching approximately $104.52 per barrel, up $1.44 or 1.40% from its Wednesday settlement price of $103.08. The rise in Brent is partly due to its greater exposure to seaborne Middle East supplies and the Strait of Hormuz.
However, this bullish geopolitical backdrop is being offset by rising US crude inventories, which increased by about 3 million barrels to 426.4 million barrels last week, exceeding analyst expectations for a decline.