Oil prices climb amid doubts over US-Iran deal
Oil prices rose on Wednesday as uncertainty grew over a potential US-Iran agreement to restore flows through the Strait of Hormuz, despite reported progress.
Oil prices climbed on Wednesday amid mounting doubts about a US-Iran deal to reopen the Strait of Hormuz, even as officials touted progress. Brent crude futures surged 72 cents, or 0.81 percent, to $89.63 per barrel, while US West Texas Intermediate crude increased by 71 cents, or 0.85 percent, to $83.91. Both benchmark contracts closed more than a dollar higher on Tuesday, marking their highest levels since mid-July. The uptick followed a nearly 5 percent rise on Monday, as hopes for a US-Iran agreement dwindled.
Shipping data revealed that traffic through the Strait of Hormuz dwindled to just six vessels on Monday, down from an average of about 11 ships over the past 10 days. Before the conflict, daily averages typically ranged from 125 to 140 vessels.
US crude oil inventories surged by approximately 9.1 million barrels in the week ending August 7, according to American Petroleum Institute data. At the same time, gasoline and distillate stocks declined, with gasoline stocks falling by 1.5 million barrels and distillate stocks decreasing by 596,000 barrels compared to the previous week.
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