Oil Edges Lower on Diplomatic Hopes

Crude oil slipped below $82 per barrel on Thursday, extending its decline to a fourth straight session amid signs of diplomatic progress in the Middle East. Iran and Oman reached an agreement over each country’s share of the Strait of Hormuz’s waters and related revenues, although Tehran cautioned that reopening the crucial waterway would require more than an agreement with Oman. Meanwhile, President Donald Trump said 10 million barrels of oil had passed through Hormuz on Tuesday, while reiterating claims that mines in the waterway had been cleared. Oil prices have also come under pressure this week after fresh US economic sanctions on Iran proved less aggressive than markets had feared, with the White House so far sparing Iran’s trading partners from tougher measures. Elsewhere, Russian President Vladimir Putin was reportedly planning an escalation in Ukraine, keeping risks to global energy supplies in focus.

Crude oil pared earlier losses and traded just below $83 a barrel on Wednesday, following two consecutive sessions of declines, as signs of increased flows from the Persian Gulf eased supply concerns. Traders are closely watching talks between Iran and Oman over a possible arrangement to restore shipping through the Strait of Hormuz. US President Donald Trump said around 10 million barrels of oil had passed through the waterway on Tuesday, raising hopes that disruptions may be easing. Meanwhile, satellite data indicated that Saudi Arabia could be increasing oil loadings from terminals inside the Persian Gulf. At the same time, Iran and Oman are reportedly discussing broader arrangements for managing Hormuz, although uncertainty remains over whether Washington would accept an agreement excluding the US. In the US, EIA data showed crude inventories were virtually unchanged last week, while gasoline and diesel stocks fell to seasonal lows.

Crude oil fell toward $80 per barrel on Wednesday, extending losses into a third consecutive session following reports that Iran and Oman discussed the establishment of a “temporary joint maritime corridor” in the Strait of Hormuz. Technical talks between the two sides are set to continue as they work toward a permanent maritime corridor covering the future administration of the strait, information-sharing mechanisms, traffic management, and the provision of maritime and security services. Meanwhile, Pakistan’s army chief traveled to Tehran to support diplomatic efforts, while Qatar said it was continuing its mediation. Oil prices have come under pressure this week after Washington’s latest measures to intensify economic pressure on Iran proved less aggressive than markets had expected, with the US stopping short of imposing secondary sanctions on Iran’s trading partners.