Oil Prices Slip on Iran-Oman Negotiations as Market Awaits Strait of Hormuz Deal

Oil prices declined by 0.84% on Wednesday as investors tracked negotiations between Iran and Oman over traffic through the Strait of Hormuz.

The Brent crude price fell $0.74 to $87.84 per barrel, while West Texas Intermediate (WTI) dropped $0.13 to $82.23 per barrel.

These losses were pared back after US oil inventory data showed a smaller-than-expected increase of 95,000 barrels to 428.9 million barrels in the week ended August 21.

Ole Hansen, head of commodity strategy at Saxo Bank, said that 'the market has shifted from pricing in a high probability of prolonged disruption and renewed escalation towards anticipating a partial reopening, negotiated shipping arrangements and a lower risk of further military confrontation.'