Key facts
- Oil prices stabilized after a two-day slump as investors awaited progress in U.S.-Iran talks.
- Brent crude futures rose 0.33% to $79.62 a barrel, and U.S. West Texas Intermediate futures gained 0.16% to $75.90.
- Qatar stated mediators were making progress in efforts to end the war, contributing to lower oil prices.
- President Trump discussed efforts to narrow differences between Washington and Tehran with Qatar's Emir.
- Iranian officials denied direct negotiations with the U.S. were taking place.
- U.S. crude and gasoline inventories rose last week, while distillate stocks fell, according to API data.
Oil prices stabilized on Wednesday after significant declines over the previous two trading sessions, as investors awaited further developments in U.S.-Iran negotiations aimed at resolving the conflict and restoring traffic through the Strait of Hormuz. Brent crude futures rose approximately 0.33% to $79.62 a barrel, while U.S. West Texas Intermediate futures increased by 0.16% to $75.90.
Qatar announced on Tuesday that mediators were making progress in efforts to end the war, a development that contributed to the recent drop in oil prices. However, Iran has denied U.S. President Donald Trump's assertion that direct talks have commenced. Analysts from IG noted that a key sticking point in the negotiations appears to be Iran's potential insistence on control over the waterway.
Brent crude had closed below $80 a barrel on Tuesday for the first time since July 13, extending Monday's losses on hopes for a resolution. Prior to the conflict, an estimated 20% of the world's oil and liquefied natural gas transited through the Strait of Hormuz. Data from the American Petroleum Institute indicated that U.S. crude and gasoline inventories increased last week, while distillate stocks decreased.