WTI Crude Prices Slip Below $84 Amid US Inventory Build and Middle East Tensions

WTI crude oil prices slipped below $84 per barrel on Wednesday, despite gaining around 0.9% in the previous session.

The Middle East remains a dominant driver of oil market sentiment, with traders growing less confident that the US and Iran will reach an agreement to normalize traffic through the Strait of Hormuz.

Additional incidents involving shipping in both the Strait of Hormuz and the Bab el-Mandeb have reinforced geopolitical risk premiums, outweighing some bearish pressure from US inventories.

The US Energy Information Administration's (EIA) preliminary data showed a crude inventory build of around 9.1 million barrels in the week ended August 7, which could cap further upside in WTI if confirmed by today's official report.