Oil edges lower as markets watch Iran and Oman talks on Hormuz

Oil prices are edging lower today as investors assess talks between Iran and Oman on the arrangements governing the Strait of Hormuz. A reported rise in US oil inventories, which was smaller than expected, is limiting the decline.

At around 17:45 CEST, Brent crude was down about 0.3 percent at 88.30 dollars a barrel. US light crude West Texas Intermediate (WTI) was down 0.2 percent, trading near 82.20 USD a barrel.

Iran and Oman have reached agreements on their respective shares of the Strait of Hormuz and the revenues derived from them. A spokesperson for Iran’s Revolutionary Guards said today, according to the Iranian Tasnim news agency, adding that the talks had been delayed because the United States had obstructed them. However, a senior official later clarified, according to Reuters, that Iran and Oman were still working on the details of the agreements. Until US-Israeli airstrikes on Iran began in late February, around a fifth of the world’s oil and gas supplies flowed through the Strait of Hormuz.

According to data from the US Energy Information Administration (EIA), oil inventories rose by 95,000 barrels to 428.9 million barrels in the week ending August 21. Analysts polled by Reuters had expected inventories to rise by 597,000 barrels.

Oil prices in dollars per barrel (about 159 litres)