Oil Prices Slip as Hormuz Talks Boost Investor Sentiment

Oil prices declined on Wednesday as investors focused on talks between Iran and Oman regarding the Strait of Hormuz. The negotiations, which have shifted investor sentiment, aimed to restore traffic through the strategic waterway.

The Brent crude futures fell by $0.71 (0.8%) to $87.87 a barrel at 10:48 a.m. EDT (1450 GMT), while West Texas Intermediate crude futures dropped by $0.48 (0.58%) to $81.88 a barrel.

Investors' hopes for an increase in traffic through the Strait of Hormuz led to oil prices falling to their lowest levels since August 10 earlier in the session. However, they pared some losses after the Energy Information Administration reported that U.S. crude inventories rose by less than expected last week.

The official data showed a 95,000-barrel increase in U.S. crude stock to 428.9 million barrels for the week ended August 21. This was lower than the analysts' expectations of a 597,000-barrel rise, as reported by Reuters.