Oil prices remain subdued as traders await final agreement on Strait of Hormuz shipping, while unexpected US inventory builds add pressure.
West Texas Intermediate crude trades near $74 per barrel, close to three-week lows, as markets await confirmation of a shipping agreement in the Strait of Hormuz. Iran and Oman have agreed on route coordinates, but a final deal remains pending, with additional US commitments required before full resumption of traffic.
US Energy Information Administration data showed crude inventories rose by 2.479 million barrels last week, defying expectations for a 1.5 million-barrel drawdown. The surprise build follows a 7.167 million-barrel decline in the prior week, adding to bearish sentiment.
Technical indicators suggest a near-term bearish bias, with WTI holding below key moving averages and the Relative Strength Index below neutral. Geopolitical risks continue to support a risk premium, limiting deeper losses.