Crude oil prices settled lower on Wednesday following a choppy trading session as markets monitored progress in talks between Iran and Oman over the Strait of Hormuz. Brent crude settled down $0.74, or 0.84%, at $87.84 per barrel, while WTI declined $0.13, or 0.16%, to settle at $82.23 per barrel.

Both benchmarks fell to their lowest levels since August 10 during the session as hopes for increased shipping activity through the Strait of Hormuz weighed on prices. Losses were later limited after U.S. inventory data showed a smaller-than-expected increase in commercial crude stocks.

U.S. crude inventories increased by just 95,000 barrels to 428.9 million barrels for the week ending August 21, compared with expectations for a 597,000-barrel increase.

Market sentiment has shifted as Iran and Oman work toward an agreement governing shipping through the Strait of Hormuz. Progress toward a negotiated arrangement has raised expectations that traffic through the waterway could gradually increase, potentially reducing the geopolitical risk premium that has supported crude prices.

Shipping activity, however, remains well below normal levels. Only five commodity vessels transited the Strait of Hormuz on Tuesday, compared with a 10-day average of 15 vessels and significantly below pre-war traffic levels. Before the conflict began at the end of February, the waterway handled roughly one-fifth of global oil and gas supplies.

Broader diplomatic efforts to reduce tensions also continued, with Pakistan reporting progress in discussions with Iran and Qatar preparing additional talks with Iranian officials.

Meanwhile, supply disruptions linked to the Russia-Ukraine war continued. Russia’s NORSI refinery, the country’s fourth-largest refinery and second-largest gasoline producer, suspended crude processing following a Ukrainian drone attack.

Growing expectations for increased shipping through the Strait of Hormuz continued to weigh on crude prices, although traffic remains severely constrained and ongoing disruptions to Russian energy infrastructure are limiting the market’s downside.

• Where: Loews Arlington Hotel
• Attending: Brian Baker (239.297.4519), David Cohen (954-729-4774), and Curtis Chandler (239-405-3365)
• Conference Website

• Where: The Westin Galleria Dallas
• Attending: David Cohen (954-729-4774), and Curtis Chandler (239-405-3365)
• Conference Website

• Where: The Westin Galleria Dallas
• Attending: Brian Baker (239.297.4519)
• Conference Website