West Asia Diplomacy Lifts Oil Prices as Inventories Rise

Crude oil futures traded lower on Thursday as diplomatic efforts in West Asia raised hopes of resolving supply concerns. The price of Brent oil for November fell by 0.40% to $86.59, while WTI (West Texas Intermediate) October crude oil futures dropped 0.41% to $81.89. On the Multi Commodity Exchange (MCX), September crude oil futures declined 0.75% to ₹7838, and October futures fell 0.76% to ₹7735.

The diplomatic efforts involve Qatar, Iran, and Oman working together to control the Strait of Hormuz. Qatari Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani is expected to discuss these efforts during his visit to Tehran on Thursday. He will also address freedom of navigation in the waterway and the need to return to the status quo before February 28, according to a Reuters report.

Meanwhile, US crude oil inventories increased by 0.1 million barrels for the week ending August 21, according to the Energy Information Administration (EIA). This is 1% above the five-year average for this time of year. Total motor gasoline inventories decreased by 2.5 million barrels last week and were 6% below the five-year average.