Crude oil futures fall on reports of Iran-Oman deal for Hormuz reopening

Crude oil futures experienced a decline on Thursday following reports of an agreement between Iran and Oman to partially reopen the Strait of Hormuz. At 10:05 am, Brent oil futures were trading at $78.99, marking a 0.58 percent decrease, while WTI (West Texas Intermediate) crude oil futures were at $74.70, down 0.69 percent. Warren Patterson, Head of Commodities Strategy at ING Think, and Ewa Manthey, Commodities Strategist, highlighted in their Thursday Commodities Feed that the market remains optimistic about a potential deal between the US and Iran, which could restore energy flows through the Strait of Hormuz.

Iran has confirmed discussions with Oman on new shipping arrangements for the strait, with a joint statement expected soon. However, the progress of US-Iran negotiations will ultimately determine whether energy flows can resume. Meanwhile, the US Energy Information Administration reported a 2.5 million barrel increase in crude oil inventories, bringing US commercial crude oil reserves to 407 million barrels, 6 percent below the five-year average.

Motor gasoline inventories decreased by 1.6 million barrels, dropping 7 percent below the five-year average, while distillate fuel inventories fell by 3.5 million barrels, 12 percent below the average. Total products supplied in the US over the past four weeks averaged 20.4 million barrels per day, a 0.9 percent decrease from the same period last year.